Blockchain’s Ability To Optimize Human Collaboration in the Modern Gig Economy

Blockchain, FinTech, Innovation | February 15, 2019 By:

More and more people craving freedom and flexibility are joining the gig economy. At the current rate, 50 per cent of the U.S. workforce is expected to freelance by 2020.

Fortunately, new project management software and conferencing technology have made it natural to work remotely and amplified the growth rate of the gig economy. Freelancers enjoy the flexibility of working anywhere, anytime and have the autonomy to choose only projects and tasks they want. Simultaneously, employers utilise freelancers to reduce labour costs or augment an existing team by outsourcing skills not available in the office.

While the benefits for both sides cannot be understated, there are also plenty of issues surrounding inefficiency and lack of guarantee which limit the gig economy from flourishing. However, as mainstream businesses become more receptive to the blockchain, there are growing opportunities to develop better employment practice, guarantee high-quality work, and ensure reliability which benefits both employers and employees.

Ensure high-quality work by promoting accountability and reliability

The social web serves a wealth of information about freelancers and potential employers – but this may be inaccurate, making hiring risky. A blockchain-based platform consisting of immutable records, validated work histories and employer reviews will serve as an incentive for participants to deliver work of assured quality, adhere to deadlines and keep promises.

Moreover, smart contracts ensure fairer rates and deliver clear expectations so freelancers are guaranteed payment. Employers can trust the quality and scope of work they pay for.

With the system recording all distinct individual actions, a register of trusted actors and resources can secure greater accountability. Employers can search for trusted freelancers of model record who are the right fit for the task.

Blockchain is just the beginning. One can also add elements such as gamification to the blockchain medium to promote competition and track initiative-taking – making it contextually social to motivate proactive behaviour. For example, one may turn task flow software into a vehicle for improving and enhancing volunteerism.

When services also throw location-based event-sharing to the mix that’s the advent of a framework capable of supplying people in any context – opening up a world hitherto unserved by the software industry – the world of localised affirmative action. Such a service will offer a shared social resource of mutual interest, both to commerce and to the massive and persistent un-monetisable volunteer sector.

Enable faster and efficient payments

Traditional freelancing platforms may involve many parties in the payment approval process and payments can take weeks to reach the beneficiary. Moreover, intermediaries obtain third-party fees for the services offered. When provision-centred blockchain apps have an inbuilt wallet, the remittance arena becomes instantaneous.

Decentralized blockchain-based freelancing platforms will dispense with middleman with an added functionality to pay or get paid in cryptocurrencies. Both parties will benefit as cryptocurrencies enable seamless transactions across borders, without any need to worry about (fiat) exchange rates, bank fees, or latency. Smart contracts also guarantee security and efficiency while transacting with an anonymous party.

Blockchain can power a more efficient and reliable gig economy

As the entire globe turns into a virtual marketplace the physical distance between employee and employer will lose relevance.

With an ever increasing number of people looking for alternate methods of making money, blockchain freelancing platforms and digital currencies will benefit employers and employees, by eliminating intermediaries and giving power to both parties to efficiently and transparently transact on equal terms.

Blockchain has the potential to deliver a democratised, powered-up gig economy that’s legitimate, safe, and reliable for all parties. It remains to be seen how different projects will leverage this technology to create solutions and transform how people make stuff happen, work and play together.

About Canyudo

Canyudo has the vision to drive a resurgence in human cooperation by asking users “what can you do?” to contribute within their community or the broader global economy. By leveraging game design to incentivise prosocial behaviour, blockchain to promote record transparency and payment efficiency, Canyudo’s app has a noise-free UX to enable users to get things done while doing social good. Users may advertise jobs, tasks, events, or items for sale in the sharing economy, with the option to transact in cryptocurrency.