Who didn’t want to be their own boss at least once in their lifetime? Most freelancers aspire to work whenever they like from wherever they want and get paid in their preferred currency. With decentralized payment methods, self-employed individuals can enjoy even more freedom and flexibility in their work-life.
It’s not just freelancers who choose crypto instead of fiat money. Blockchain enthusiasts are also looking for ways to boost their crypto stack. Some choose to convert their savings into digital assets, while others seek out jobs that pay in crypto. That’s when job search platforms powered by blockchain come in handy.
Freelancing on Blockchain Technology
The number of decentralized freelancing job platforms is growing, with many options to select from. We interviewed two freelancers and a representative from LaborX, to see the perks of working with a different payment system than the majority is used to.
Lukas Merville, a successful freelancer from Canada, top-rated on LaborX, shares his experience about working on the platform:
“LaborX is my very first experience working as a freelancer on a blockchain-powered job-seeking site. In early 2020, during the pandemic, I had to find a way to generate revenue from home. I came across LaborX, created a profile, and received offers almost immediately. I was already familiar with crypto, so for me, the adoption was instantaneous. Since then, I haven’t looked back. LaborX is a safe platform that handles payments brilliantly.” Another user, Isreal Ufumaka – a highly regarded freelancer that chose LaborX over other freelancing platforms – said he did so because of the higher income when receiving crypto payments:
“I was on Anytask, Fiverr, and Upwork (NASDAQ:UPWK). I switched to LaborX because I was looking for a better source of income as a freelancer. I prefer getting paid in crypto because it's simple and easy, and charges, like on Skrill and other platforms, are eliminated. Also, I can choose to invest my pay by trading them or staking.” Alexandra Kugusheva, communications manager from LaborX explained to DailyCoin how the platform works.
LaborX is a decentralized freelancer platform. Just like other popular on-demand work sites, LaborX connects Customers with Freelancers, but in this case, there are no middlemen. LaborX is hosted on the Ethereum blockchain, allowing the process of organizing work and getting paid to be managed using smart contracts.
The user interface of LaborX is similar to other freelance portals. Freelancers can upload Gigs, which offer fixed-price tasks for Customers to buy off the peg. Alternatively, Customers can post their Jobs if they are looking for something specific, and Freelancers can browse these opportunities and apply if their skills and experience match. Once funds are escrowed by the Customer, again using a smart contract, the Freelancer can begin work, and if the job is completed as required, payment is made automatically to their crypto wallet.
Freelancers Prefer Getting Paid in Crypto
For every crypto enthusiast, receiving their well-deserved pay in crypto is a big plus. As large institutions, as well as small businesses, begin accepting digital coins as payment, choosing a decentralized payment method is becoming more popular.
Kugusheva says there are several reasons why freelancers might prefer earning crypto instead of fiat money for their work:
- Global payments –– crypto is a low-cost way to send money anywhere in the world. The legacy financial system charges high fees and imposes poor exchange rates that make paying smaller amounts of money uneconomical.
- Openness –– many freelancers do not have access to a bank account, or are underbanked – including in so-called developed countries like the US. Crypto payments allow anyone to access the gig economy.
- Speed –– payments can be seen on the blockchain as soon as they are made, and typically confirm fully within a few minutes.
- Security –– crypto transactions cannot be reversed or blocked, which is a key concern for anyone paying freelancers or undertaking freelance work in certain countries.
- Transparency –– using smart contracts and crypto payments gives users confidence that funds will be released automatically, and the ability to track whether payments have been made.
Freelancers shared the main benefits of receiving crypto payments: the level of transparency of interactions and payments recorded on the blockchain, the flexibility to choose preferred cryptocurrency to get paid in, super-fast, unregulated payments, being able to get paid a large sum for projects in an instant with no extra charge.
Future is Decentralized Freelance Platforms
As Kugusheva explains, decentralized platforms have the advantage of being open: there are no gatekeepers, or single points of failure, as there are with centralized systems. That means anyone can use LaborX to find work or a freelancer – no one is unfairly or arbitrarily excluded, which is often a problem on conventional freelancer portals.
As a downside, this openness can result in a large number of poor-quality freelancers and customers registering. LaborX deals with this problem with a decentralized reputation system. By taking into account user feedback and payment transactions from previous jobs recorded on the blockchain, it’s possible to rate all users reliably, since the blockchain cannot be tampered with. That’s another benefit over conventional freelancer websites, which often suffer from fake reviews and users who exaggerate their skills and experience to gain higher-paying jobs.
Freelancer Israel also added that some main disadvantages include fluctuations in payment with altcoins like ETH and the possibility of getting scammed. Yet LaborX also supports stable coins, which remove the volatility risk inherent in coins like ETH. Users have the choice of which crypto they arrange as payment.
LaborX is not the only freelancing platform that is worthy of attention. Orbi Network has a bright vision for the future of work. The company seeks “to create a better, more efficient and trustless environment based on verified and immutable data.” Ethlance is another excellent example of a freelance platform –– it runs off Ethereum, is free from external control, and has 0% service fees. For the freedom to get paid in different currencies, Gitcoin might be another great choice for freelancing.
On The Flipside
- Some blockchain-powered freelancing websites are only at an early stage and will take time to become popular.
- The platforms are still lacking users — both freelancers and job creators.
- The majority of crypto websites offer payments in Ethereum which is volatile but easily exchangeable.
Why You Should Care?
Blockchain-powered freelance platforms aim to reduce or eliminate processing fees. This results in clients saving money and freelancers earning more. When working for blockchain, freelancers can forget about currency exchanges, receive their money immediately, among many more benefits.
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