Independent and Blockchain. The solution is finally here
Who hasn’t wanted to be their own boss at least once in their life? Most freelancers aspire to work when and where they want and are paid in the currency of their choice. Thanks to decentralized payment methods, the self-employed can enjoy even more freedom and flexibility in their professional life.
It’s not just freelancers who are choosing crypto over fiat currency. Blockchain enthusiasts are also looking for ways to increase their crypto stack. Some choose to convert their savings into digital assets, while others seek paid crypto jobs. This is when blockchain-powered job search platforms come in handy.
Freelance on Blockchain technology
The number of decentralized freelance work platforms is growing, with many options to choose from. We interviewed two freelancers and a representative from LaborX, to see the benefits of working with a different payment system than the one most are used to.
Lukas Merville, a successful Canadian freelance writer, ranked among the best on LaborX, shares his experience working on the platform:
“LaborX is my very first freelance work experience on a blockchain-based job search site. In early 2020, during the pandemic, I had to find a way to generate income from home. I stumbled across LaborX, created a profile, and received offers almost immediately. I was already familiar with crypto, so for me the adoption was instantaneous. I haven’t looked back since. LaborX is a secure platform that handles payments brilliantly. Another user, Isreal Ufumaka – a highly regarded freelance writer who chose LaborX over other freelance platforms – said he did so because of the higher earnings when receiving crypto payments:
“I was on Anytask, Fiverr and Upwork (NASDAQ :). I switched to LaborX because I was looking for a better source of income as a freelance writer. I prefer to get paid in crypto because it’s simple and easy, and the fees, like on Skrill and other platforms, are eliminated. In addition, I can choose to invest my salary by trading or staking them. Alexandra Kugusheva, Head of Communications at LaborX, explained to DailyCoin how the platform works.
LaborX is a decentralized freelance platform. Much like other popular work-on-demand sites, LaborX connects clients with freelancers, but in this case, there is no middleman. LaborX is hosted on the blockchain, which makes it possible to manage the process of work organization and compensation using smart contracts.
LaborX’s user interface is similar to that of other independent portals. Freelancers can download Gigs, which offer fixed-price assignments that clients can purchase directly. Alternatively, clients can post their vacancies if they are looking for something specific, and freelancers can browse these opportunities and apply if their skills and experience match. Once the funds are blocked by the client, still using a smart contract, the freelancer can start working, and if the work is completed as required, payment is automatically made to their crypto wallet.
Freelancers prefer to be paid in crypto
For all crypto enthusiasts, receiving their well-deserved salary in crypto is a big plus. As large institutions, as well as small businesses, begin to accept digital coins as a means of payment, the choice of a decentralized payment method becomes more and more popular.
Kugusheva says there are several reasons why freelancers might prefer to earn crypto instead of fiat money for their work:
- Global Payments –– Crypto is an inexpensive way to send money anywhere in the world. The old financial system charges high fees and imposes poor exchange rates, making paying small amounts unprofitable.
- Openness –– many self-employed people do not have access to a bank account, or are underbanked – including in so-called developed countries like the United States. Crypto payments allow anyone to access the gig economy.
- Speed –– payments can be seen on the blockchain as soon as they are made, and usually confirmed within minutes.
- Security –– crypto transactions cannot be reversed or blocked, which is a major concern for anyone who pays freelancers or undertakes freelance work in certain countries.
- Transparency –– the use of smart contracts and crypto payments gives users the assurance that funds will be released automatically and the ability to track whether payments have been made.
“Crypto takes care of all my needs so I don’t need cash. I can pay my bills, rent and do groceries with Crypto. I very rarely get paid in cash and when I do , I immediately convert that money into crypto. This way of life was not possible a few years ago, but adoption has grown to such an extent in some countries that living this way, only with crypto, is now accessible to almost everyone, ”explains freelance writer Lukas.
The freelancers shared the main benefits of receiving crypto payments: the level of transparency of interactions and payments recorded on the blockchain, the flexibility to choose the preferred cryptocurrency to get paid, super-fast and unregulated payments, the possibility of receiving a large sum for projects in an instant at no additional cost.
The future is decentralized freelance platforms
As Kugusheva explains, decentralized platforms have the advantage of being open: there are no gatekeepers, nor single points of failure, as is the case with centralized systems. This means that anyone can use LaborX to find work or a freelance writer – no one is unfairly or arbitrarily excluded, which is often a problem on conventional freelance portals.
As a downside, this openness can result in a large number of low quality freelancers and clients signing up. LaborX addresses this problem with a decentralized reputation system. By taking into account user feedback and payment transactions from previous tasks recorded on the blockchain, it is possible to rate all users reliably, as the blockchain cannot be tampered with. This is another advantage over conventional freelance websites, which often suffer from bogus reviews and users who exaggerate their skills and experience to get better paying jobs.
Freelancer Israel also added that some of the main drawbacks include payment fluctuations with altcoins like ETH and the possibility of getting ripped off. Yet LaborX also supports stable coins, which removes the risk of volatility inherent in coins like ETH. Users have a choice of which crypto they organize as a payment.
LaborX is not the only freelance platform that deserves attention. Orbi Network has a bright vision for the future of work. The company seeks to “create a better, more efficient and trustless environment based on verified and immutable data”. Ethlance is another great example of a platform independent – it runs on Ethereum, is free of external scrutiny, and has a 0% service charge. For the freedom to get paid in different currencies, Gitcoin could be another great choice for freelance work.
On the reverse
- Some independent blockchain-based websites are in their infancy and will take a long time to become popular.
- The platforms still lack users, both freelancers and job creators.
- The majority of crypto websites offer payments in Ethereum which is volatile but easily tradable.
Why should you care?
Independent blockchain-powered platforms aim to reduce or eliminate processing fees. This saves clients money and freelancers earn more. When working for the blockchain, freelancers can forget about currency exchanges, receive their money immediately, among many other benefits.
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