Can Blockchain Help Solve the Problems With the Freelance Industry?

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The freelance industry has swollen in size in the past few years, thanks to its many advantages, including micromanagement and savings. Freelancers are taking the burden off many organizations regarding costs and gaining access to a global workforce. However, freelancers also face poor payments and job insecurity. There is conflicting data on the earnings of people participating in the gig economy.

Who Says Freelancers Make a Good Income?

A report from Deloitte pointed out that people engaged in the gig economy tend to earn much less than people who are employed. Freelance cab service Uber claimed that the median salary of NYC cab drivers was almost $91,000 annually. However, a Ridester survey shows that Uber drivers earn a median net income of only $14.73 per hour, including tips.

However, the freelance economy is growing at a large scale. Former US Secretary of Labour Robert Reich estimated that 40 percent of the US workforce would consist of independent contracts within a few years. Freelancers Union and Upwork did a similar report, suggesting that by 2027, the majority of the US workforce will be freelancers.

With this growth comes a major headache – freelancers do not get counted as full-time employees, which means they remain out of the ambit of health insurance and other benefits. They have to pay their own Social Security and fund their own retirement too.

Can Blockchain Solve Freelance Market’s Problems?

Freelancers have to depend on websites like Fiverr and Upwork to get a gig and rest assured that they will be paid by the clients. However, the cost of this assurance is often very high. Additionally, these platforms could be more client-centric than freelancer centric which could create a problem for the workers.

Will Lee, the chief executive of the blockchain-based freelancing platform Blue Whale Foundation, suggests that the problem lies in the centralization of power on these platforms. Blockchain can bring fairness to the freelancing industry and help in reducing the fees that workers have to pay. Additionally, people can be compensated instantly instead of waiting for days for a wire transfer.

Blockchain can also make the industry simpler. Blue Whale, for instance, solves the problem of paid time off and sick pay. It comes with a reward bank that aims to provide more incentives to the workers. CryptoTask, another freelancing platform offers a blockchain community-based dispute resolution system.

Though blockchain hasn’t “exploded” in the freelance world, the possibilities and opportunities could be huge in helping to grow the gig economy.

Can Blockchain Help Solve the Problems With the Freelance Industry? was originally found on [blokt] – Blockchain, Bitcoin & copy trading cryptocurrency.