Freela: Embracing the Blockchain for a New Take on Freelancing

Evan  |  May 26, 2021

Freelancing is an excellent topic to discuss the latest developments in blockchain tech and how it can be applied to the self-employment world. 

Today, the growing freelancing ecosystem has shaken up the traditional professional world. Students, instead of finding part time jobs, are opting to monetize their professional skills by offering their programming or designing skills for 40$ per hour on freelance platforms.

A 2017 study by Upwork predicts that Freelancers will become the majority workforce in America, with 50% of millennials already offering their freelance services. Freelancers on such sites are able to earn a  much higher wage in comparison to their native wages. For example, Indian web developers who would be paid around 450 rupees/$6USD an hour, can charge $45 per hour on Upwork or Fiverr. 

Furthermore, 63% of freelancers stated that they prefer the security of a diversified portfolio of clients rather than a single employer.

The rise of the freelance economy propelled Intermediaries such as Upwork and Fiverr as talent marketplaces. The platforms allow freelancers to be rated for their completion of work and come recommended by the platform for good performance. 

Let’s take a closer look at the space, Upwork is largely regarded as a pioneer of the freelance economy. With an estimated 9 million registered users across 180 countries with over $1 billion in payments to freelancers. Upwork acts as an intermediary agent, earning 5% to 20% per payment plus an additional 2.75% payment processing fee. 

Upwork acts as an intermediary and escrow agent and charges freelancers a fee on every transaction. Upwork earns an estimated revenue of around $404 million a year, the majority of which comes from these fees.

The mediation and customer support happens via chat through Upwork’s support staff, which is most likely a network of inexpensive scripted virtual assistants from around the world. The platform works generally well for ambitious, skilled, and talented people who like to be their own boss and love the idea of working from anywhere in the world. 

Unfortunately, the situation is not as rosy as it seems at first glance. Freelancers complained of unfair account freezes, reputation-shattering negative feedback from bad clients, as well as bad customer support from Upwork themselves. 

Over time these fees add up and freelancers need to consider whether the intermediary fee of 10-20% is worth it.  Freelancing platforms experience a reduction in their user retention rate as more and more freelancers find ways of using their own communication channels so that they secure further contracts without having to pay a fee. 

A trustless blockchain is the key to freelancer freedom. Smart contract technology can allow both parties freedom to create their own terms without 3rd party or intermediary involvement.  Freela with its game changing strategy in freelancing brings in an accurate match of employer – employee getting them into a closer spectrum. This ensures “right person on right job for the right pay” making a “demand – supply” curve meaningful, both quantitatively and qualitatively. With zero platform and transaction fees. 

Freela uses Blockchain technology, DeFi liquidity pools and DAO governance initiating a new game of being a freelancing ecosystem. This is the only venue in the market today to address any and every deviation which creeps in by any party, either by employee or by employer and thus guarantees a smooth experience for both parties.

About Freela:

Freela is Defi powered and self–governing DAO designed to act as a never before decentralised and broad platform for freelancing. It provides best experience not only for B2B (Business to Business) but also focuses the same for P2P (Peer to Peer) interaction with its intuitive user interface matching skilled freelancers for the job postings worldwide, all with a commission free transaction. It brings in a new innovative model assuring a professional mediation and thus ensures both the employer and employee, with best quality work for the former and best pay for the latter.

 

Learn more about Freela here:

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