At this time of the coronavirus, with much of the world now shifting home to work or getting into the gig economy, the number of such workers is going up.
When it comes to getting paid, it gets a little iffy. A freelancer sitting in Finland might not want to get paid in Canadian dollar for instance. And, who wants to go through the conventional processes of currency conversions & paying a commission?
Hence, it only makes sense we came up with a better system. The invention of virtual currencies like Bitcoin, Ethereum, & the likes are breaking the barriers of how freelancers are paid for their services. Freelancers can now benefit from borderless advantage these cryptocurrencies offer, making it easy to get paid for their services no matter where they are in the world. Very soon paying freelancers in cryptocurrencies could become the norm.
What is cryptocurrency & how it works
To simplify, it is a digital currency existing only virtually, i.e. nothing is in your hand. It is transferred from person to person sans a middleman like a bank. Transactions are recorded on a digital public ledger, called a blockchain. The transaction data is encrypted using cryptography.
The currency is controlled by users & computer algorithms, & not a central authority. Cryptocurrencies are traded on Online exchanges like stock exchanges. Bitcoin (BTC) Ether (ETH), Ripple (XRP) & Litecoin (LTC) to name a few are different types of cryptocurrencies.
Cryptocurrencies can be sent directly between 2 parties via the use of private & public keys. These transfers can be done with minimal processing fees with no involvement of any financial institutions. Cryptocurrencies can be exchanged for fiat currencies (conventional currencies like Dollar, Euro, Rupee) in special Online markets using a variable exchange rate.
Here are some popular platforms that pay freelancers through cryptocurrencies:
San Francisco-based LaborX is a marketplace for talent, matching employers with an untapped talent pool for entry level jobs. All jobs here are paid in cryptocurrency only. It provides secure, blockchain-based work contracts, ensuring prompt and reliable payment to freelancers or contractors.
The company’s products include LaborX Digital Escrow to reduce the chances of payment delays & disputes. The interface allows custom contract implementation that is acceptable to both — the employer & the contractor. The inbuilt SmartDispute feature will suggest a 3rd party mediator to help resolve disagreements.
Another product called PaymentX is an automated cryptocurrency payroll solution for businesses. LaborX’s Reputation module helps generate feedback so employers can select higher rated freelancers.
Ethlance is a 1st of its kind job market platform built entirely on blockchain & using only cryptocurrency for payments. Ethlance’s platform is built on the Ethereum Blockchain. However, you need to have the MetaMask browser extension to access most features of Ethlance.
Your database is located on a public Ethereum Blockchain, & is therefore transparent & accessible to all members. The platform is a marketplace for freelancers in the digital sector & individual employers & companies.
Clients can finally choose from different applicants & distribute the order to a freelancer. Once the order has been completed & delivered, payment is made in the form of ether. In this respect, Ethlance works similar to other platforms. The platform does not charge any fees for registration or membership. However, a nominal processing fee (called gas fees) needs to be paid by users.
UK-based Cryptogrind pays in Bitcoin. Navigating the Website is simple. After registering, you can browse through various sections of jobs available, using basic words or keyword tags. A freelancer can set up a profile that includes their resume, basic information and the type of services he/she can render.
The platform also serves as an escrow between the job seeker (freelancers) and the employer, holding unto agreed sum until the service is fully rendered and the employer is cool with the job by indicating with a click of a button.
Cryptogrind offers Bitcoin multi-signature escrow, & does not store Bitcoin or the data. Using cutting edge encryption technology, the platform accesses the blockchain directly without having the user sign up for hot wallets.
You can also earn an additional 2% commission from users you introduce to the platform from whatever they earn on the platform.
