How the blockchain will revolutionize employment

Smart contract platforms like Ethereum offer the opportunity to adopt a more decentralized organization of work and to influence how talent is valued!

Cryptocurrency payments: better inclusion in the job market

Remote work, democratized by Covid, could restart with cryptocurrency payments. Indeed, the current banking system is not suitable for transferring money around the world without “friction”. In contrast, crypto payments are borderless, immediate and open. Furthermore, the beneficiary no longer needs a bank account to be paid. Stablecoins like USDC also avoid the inherent volatility of cryptocurrencies like Bitcoin. In concrete terms, this means that anyone in the world can be paid without fear of a loss in the value of their “salary”. Given the large share of the world population without banks, this also induces greater inclusiveness in the labor market by removing barriers to entry.

Acceleration of the “Gig Economy”

In addition to remote working, the pandemic has also developed the “Gig economy”: the use by companies of global freelance platforms for short-term assignments: Fiverr, 99designs, etc. Blockchain and crypto payment should strengthen this model by standardizing the rules of the game with 3 advantages:

  • Fair and transparent talent selection with more reliable assessment scores. Indeed, on current centralized platforms, these scores can sometimes be questionable with unproven comments and exaggerated skills. Conversely, decentralized reputation systems use information stored permanently on the blockchain, including payment transactions, making valuations more credible and giving greater confidence in the collaboration between the company and the provider.
  • Guaranteed payments for freelancers: collaboration agreements based on “smart contracts” (computer protocols stored in the blockchain) can tie the payment to specific milestones, so that freelancers are automatically paid as progress is measured some jobs. This reduces the risk of non-payment. Funds can also be frozen in advance to ensure that the employer really has the means to pay at the start of the mission.
  • Decentralized dispute resolution. Conventional platforms resolve disagreements between freelancers and employers through procedures that can be lengthy and have an uncertain outcome. Community-based resolution allows stakeholders, including other freelancers, to view compelling evidence of work done and make a collective decision without a single point of failure.

New incentive mechanisms

The efficiency of the blockchain implies that companies can easily allocate to each employee a share of equity or tokens (Tokens) from other platforms to reward and hold them, rather than a fraction of capital dedicated to a whole small number. In the case of a “crypto-repo”, funds can be frozen over time and managed by automated strategies that maximize return and reduce risk as the withdrawal due date approaches. Alternatively, people can set their own plans, freezing funds for a period of time, while still retaining the ability to tap into their investment if circumstances require. The blockchain thus opens up the field of possibilities in terms of employment …

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