One Small Blockchain for Man, One Giant Leap for the Gig Economy

The growth of the millennial generation, now the largest generation, has coincided with a lot of societal changes. For example, the rise of political correctness has gone hand in hand with the coming of age of millennials. To be sure, correlation doesn’t imply causation, but some have a hard time believing the two are disconnected.

Or, as another example, the ascension of the gig economy to heights previously unseen. As of this past summer, the gig economy is about 34% of the U.S. workforce, and this is expected to continue growing. What isn’t expected is that millennials don’t dominate the gig economy workforce. In fact, according to a PwC report, workers over 50 years old comprise nearly two thirds of workers while about half of that amount are aged 25-34.

As older generations pass on and retire, it is likely that millennials will continue to grow as a portion of the gig economy workforce--especially in light of their affinity for more flexible hours and the ability to work from home. Moral of the story: the gig economy is here to stay.

But the gig economy isn’t perfect, far from it. Amid some of the complaints at specific gig economy workplaces are issues with fair pay, abuses from bosses, and toxic work environments. Additionally, those who list services through websites like Upwork or Craigslist have to pay fees which eat away at profits.

In light of the gig economy’s current and projected growth, how can it be improved? Blockchain based startups like CanYa are working on platforms that will radically alter the way the gig economy operates. CanYa’s platform, which launched in 2017 in a small Australian market, is hoping to take their platform global within the next year.

Image Credit: CanYa.io

The CanYa platform is both a simplification and amplification of everything within the current system. First, by using a peer-to-peer network through Blockchain technology, CanYa is able to massively reduce fees for freelancers while at the same time putting users directly in touch with one another. Plus, CanYa uses Blockchain to amplify the present system, allowing far more freedom for contact and hiring, all with safety and security through CanyaCoins, the proprietary cryptocurrency used within the system. CanYa has also introduced a hedging mechanism in order to contend with cryptocurrency volatility, by which transactions retain their original value without being affected by coin value changes — a known pain point of the up-and-coming crypto world.

Their coin sale, which begins on November 26th, 2017 and runs for 30 days (or until all the coins are sold), will help raise the funds needed to expand the platform and add specific features. Interested parties can join CanYa’s whitelist in order to be verified for the sale.

How Blockchain Gig Economy Marketplaces Work

So how do blockchain gig economy platforms work? First, and most importantly, blockchain platforms are decentralized, meaning that they aren’t run or operated by a single, centralized authoritative body (whether a government, municipality, or corporation). This means that a third party mediator is eliminated and buyers and sellers can interact directly. Not only does this introduce a high level of transparency to interactions--it also leads to more competitive pricing.

Second, blockchain platforms provide the fairest and most honest prices. Those that use the platform have two options--they can be service providers or clients. Service providers are those that list their services while clients are those that search for, purchase, and validate service providers. Both parties have the utmost flexibility. There is no central authority dictating what they can or can’t do and how to do it.

This ultimately leads to fair and honest pricing--service providers can set the prices they choose, while clients can pick the providers whose skills, talents, and services are worth the price paid. It is a truly free market system, free from price fixing or regulations that authorities impose on the marketplaces. Additionally, fees are nonexistent with blockchain gig economy marketplaces. Because the platform is decentralized without a third party mediator, what a client sees is what they will get. Service providers can list their services for free, resulting in lower costs to clients. No hidden surcharges are passed through to consumers.

Third, the blockchain platforms have incentives built in to their infrastructures. For example, service providers are able to list their skills and services for free. This encourages involvement and participation. What’s more, when users earn coins for performing their services, they can pay for a featured status on the platform, which in turn boosts their visibility and hopefully the amount of business they bring in--the cycle is never ending.

For clients, the transparency of the blockchain platform creates a sense of trust. They can rest assured that they are dealing directly with their selected service providers. The platforms also have a built in system whereby service providers can be curated and validated by clients. Clients have the unique ability to elevate providers that perform well and demote, and possibly even remove, service providers who engage in dishonest business. It is a meritocracy through and through.

The gig economy is here to stay, and blockchain technology can make it even better. The decentralized nature of the platforms remove third party bodies and allow for fair, direct, and transparent interactions. With this in place, the gig economy has nowhere to go but up.