As the gig economy booms, decentralized job board Defilancer want to rethink the way job providers and freelancers meet.
Defilancer is building a Ethereum-based freelancer platform , will use blockchain technology to create more Elite freelance ecosystem. protocol Designed to use a smart contract-based escrow mechanism, Creating a platform that is for both customer and fair Freelancers. Defilancer wants to reinvent this Free community using the latest blockchain Technology and Virtual Currency.
Overview of the Freelance Market
Demographics are one of the most important reasons The freelance market is growing by leaps and bounds time. Linked to multiple sites Clients with potential freelancers next to them Make it easier to get paid for work done.
Working online as a freelancer exposes one to various risks. Some of these risks include identity theft, lack of guarantee for hours worked pay, and the high possibility of losing the work as a result of mild adjustments.
Despite the demerits and risks in this industry, it is a rather lucrative one. One of the most popular platforms in the freelance workspace is Upwork. In the year 2014, the company recorded $941 million in freelancer earnings. In the same year, the entire industry generated an estimated $3.2 billion.
Considering the rate of population growth and the gradual increase in internet literacy, the freelance industry is bound to grow further. In fact, it is estimated that the industry could grow to $10 billion annually in the next six years. This, therefore, means that there is an inherent need to undertake measures to curb some of the challenges faced by freelancers presently. Blockchain technology is an optimal
solution in this regard
Trouble with Current Freelance Sites
Upwork is one of the renowned companies in the freelance space, and until recently, a freelancer loses about 10% of the amount paid by the client to the website. It requires the freelancer to pay the site 20% on the first $500 earned, 10% on $501-$9,999 and 5% on $10, 000 and above. The catch in this structure is that the fees are charged on a per-client basis. For instance, logo maker deals with
several clients on a daily basis, which means they will be charged 20% on their earnings quite often. In other words, about one-fifth of their earnings will be lost to fees
Another issue faced in the freelance industry presently is the safety of the funds for the players in the transaction. This can be remedied by the use of multi signature escrow. This would ensure that funds for the client, freelancer and facilitator remain safe. Another issue faced in this market is particularly dear to the freelancers themselves, and that regards fees charged per job. Freelancers lose a good percentage of their earnings to the mediators. These mediators are technically existing freelance companies such as Upwork, freelance writing service and Fiverr among others. These mediators could potentially be eliminated through an established network that would act as a link between the freelancer and the client, demarcating any surcharges.
The platform has a friendly and easy-to-use interface for clients and freelancers to help post their requirements with ease. Clients can list their jobs and freelancers can bid for them to get the desired jobs. To ensure the authenticity of the users, the platform
will be performing identity verifications whenever necessary. The unique identities of clients and freelancers will be based on their addresses in the blockchain, making it difficult to forge. When a contract is awarded by the client, he needs to deposit platform fee which is paid in the Defilancer token. The platform will utilize smart contracts and Escrow mechanism to hold the fee and perform
disbursement of the collected funds on obligations met. Freelancers Tribunal is created which decides on the disputes between clients and freelancers.