What does blockchain technology and hiring contractors have to do with each other? First, let’s look at what blockchain is. There is a common analogy comparing blockchain technology to the way Google Docs works. More specifically though, information held on a blockchain exists as a shared — and continuously reconciled — form of a database. The blockchain database isn’t stored in any one location, meaning the records it keeps are available publicly and easily verifiable. So, will we see blockchain technology changing the freelance industry?

Going back to what blockchain technology is, no single centralized version of the information it publishes exists for a malicious hacker to corrupt. Hosted by as many as millions of computers simultaneously, its data is easily accessible to anyone with an internet connection.

Now, let’s look at some of the areas where blockchain-backed freelance platforms such as LaborCrypto™ will benefit from implementing blockchain technology:

1. Background checks and verifying employment histories can be a time-consuming, highly manual task. If employment and criminal records were stored in a blockchain ledger (and thus free from the possibility of fabrication), freelance platforms could streamline the vetting process and move hiring processes forward more quickly.

2. Some potential freelancers are unbanked and blockchain and cryptocurrency-backed platforms will make it easier for them to find work on the fly and be paid for their labor through a decentralized ecosystem via cryptocurrency, and without the hindrance of traditional financial institutions.

3. Because of the blockchain, decentralized freelance platforms will cut operating costs by eliminating the need for certain managers, auditors, clerks, and administrators working with document circulation. Blockchain provides reliable information storage not in a centralized database, but in a decentralized one. There will be no need to verify the information or re-check it and the need for human resources to work with information is minimized (data, figures and documents).

4. Another area it will improve on is the dispatching system. The automation of processes and smart contracts based on the blockchain will guarantee the validity of the process of hiring a contractor (transactions not involving a dispatcher or other intermediary). This algorithm will connect the consumer to the nearest available contractor in a much faster way than centralized technology can. This reduces the cost of the service for the provider and provides the consumer with faster, more reliable service.

Blockchain technology unlocks new possibilities for the improvement of freelance platforms and the delivery of freelance services. It also helps freelancers by developing an ecosystem based on private entrepreneurship. Thanks to blockchain technology, private freelancers can compete with large corporations. Previously, this wasn’t possible, given the coverage and costs of promoting their business in a regulated system. So, it is safe to say that we see blockchain technology changing the freelance industry. To learn more about blockchain-backed online platforms, visit https://laborcrypto.com