Over the course of 15 years, if there is anything that has undergone a massive change, it is our working class. Gone are the days when individuals strived for 9-5 jobs, waited years for a single promotion, or worked overtime for extra bonuses.
Nothing is the same anymore.
With technical platforms evolving every day and so their awareness, people are finding more ways to support their financial incomes. While some are working part-time or may have become entrepreneurs, the others have joined the global freelance syndicate. Although freelancing isn’t new to most of us, its rapid build-up has changed the traditional working monarchy we were once bound to.
The Massive Growth of Freelance Industry over the Years
Also recognized as the Gig Economy, the freelance business is taking the world by storm. The idea of entrepreneurship, flexible working hours and expedient conditions have attracted a mass of audience to connect with companies all around the globe. According to a recent study, the freelance workforce grew by 500 percent between the period from 2000 to 2016.
The Growth Spurs:
The ever-growing market competition, lack of jobs and devastating economic recessions in Europe and the Middle East were among the main reasons why a huge chunk of the working force switched to freelancing. On the other hand, working remotely gave people abundant creative opportunities such as graphic designing, creative writing, designing, coding, teaching etc. Individuals no longer have to strive for one profession; they can simply become a doctor with a part-time photographer or writer!
Freelance Industry Revolution:
With this rapid industrial revolution over the years, there has been an increasing trend of start-ups where people are incubating more of their creative ideas and pursuing wealth and passion for their careers. This ability to stand for ones’ own creative self has enticed many youngsters to come forward for a change. Instead of wasting their talent in search of traditional office jobs, they are now selling their skills with just an internet connection.
Where does the Problem Lie?
Unfortunately, in parts of the world where the freelancing economy saw impressive growth, there were technical glitches that couldn’t have possibly been ignored. An economic model that incorporated people from around the globe was hindered by a traditional fiat system with payment methods highly inefficient than before.
Since freelancers and employers belonged to different areas of the world and had different currencies all around, it was difficult to find an intermediary platform in between them. Even when there was an existing platform, a number of people faced incompatible payment transfers or transfers with inordinately high fees (20% or more). This reduction in fee barred employers from hiring freelancers from other parts of the world.
To find a midway, some clients even took help from third-party solutions in transfers and currency conversions. But to utter dismay, they also had extra fees and barriers, which added more misery for the unbanked population of the world. Also claimed by a report, many of these solutions were more inclined on taking their profits to fulfill their agendas in lure of this evergreen freelancing upsurge. A number of them also sold important data further to advertisers for the sake of money, which in a way, marred freelancers and their efforts.
In Search of a Solution: Cryptocurrency and Decentralized Applications
In the wake of this situation, the freelance industry is suffering tremendously. While people from under-developed countries who need a platform for their skill are dejectedly losing all hopes, a solution to this problem is necessary. With that being said, a new wave of technology called Blockchain is set to bring a breakthrough in the job industry. Why is it termed as a solution? Read on below:
Cryptocurrency as a sigh of relief:
The Blockchain is basically a public ledger that controls electronic cash transactions globally. Laid out in 2009, the concept behind this system of technology was to introduce a peer-to-peer virtual cash system that included non-physical currency called Cryptocurrency. Any transaction/transfer that occurs over the internet is recorded in Blockchain, which can neither be tampered nor altered by anyone. The entire system is decentralized i.e. not in control of any specific authority or any central banks. This makes cryptocurrency and its transactions safer and transparent.
Blockchain Future Prospects:
Though a majority of freelancers don’t have knowledge about cryptocurrency yet, we still can find this approach a shining light in near future.
How will Cryptocurrency pave ways for Freelancers?
According to statistics, so far, 29% of 1000 freelancers are fully aware and are ready to accept cryptocurrency as financial compensation for their skill. As this outgrows, the number of crypto owners along with general understanding among common people will increase too. Some benefits that this revolution will bring alongside are:
Boundless work opportunities:
Since money transfers will now be online, there won’t be any need for exchanging physical currencies and thus employers will be able to hire more clients globall
Data and privacy protection:
None of the information shared between the two parties could be copied or leaked since no dealings with bank accounts or data like that.
People will easily be able to trust each other while exchanging cryptocurrency like bitcoins.
Virtual Payments will save currency conversion costs and secure all transactions.
Great support to people belonging to under-developed countries since they don’t have enough support with money transfers, and reliable currency exchanges.
There would be no third parties or intermediate sources involved.
Freelance Community Growth:
With this revolution, more and more people will get involved in making the freelance industry easy access for everyone to showcase their skills.
There would be no money transfer fees or waiting times since transactions on Blockchain occur within seconds.
Safety and security:
None of the data would be accessible to third-party advertisers making the platform more safe and secure.
Everything would be transparent. In the case of fraud, freelancers will easily be able to know or expose such employers.
Despite the hype of cryptocurrency, we believe it is not something that will take over within months. On a wide scale, the technology may need another 5-10 years to bring noticeable changes in the freelance industry. However, the recent growth in trends signifies a positive direction and assurance of Cryptocurrency and Decentralized Networks taking over the Freelancing world very soon!