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Blockchain has the solution to the problems of freelancing platforms

June 30, 2020

A new company is trying to change the way independent talent and their respective clients meetvia a platform operated by the community. To achieve this, the project has its own governance token.

The core idea of ​​the platform, known as Braintrust is Eliminating recruiters in recruiting highly qualified freelance and contract jobs, mainly in the IT industry.

In contrast to the different versions of this concept that emerged in the era of the first coin offering, Braintrust does not force users to use their own token for payments. Instead, it borrows some concepts from the governance of DeFi and especially compound to create one Community managed platform.

Blockchain has the solution to the problems of freelancing platforms
Blockchain has the solution to the problems of freelancing platforms

Cointelegraph interviewed its CEO, Adam Jackson, to learn more about the platform.

Better incentives

Jackson believes that existing independent professional pooling platforms like Upwork and Fiverr suffer from fundamentally misaligned incentives between platform owners and their users:

“Your job is to connect the buyer and seller, the company, and the talent, and then facilitate the transaction. Then a fee is charged that is as high as possible as a percentage for this transaction.”

The fee that freelancers have to pay is usually around 20% of the total amount of the invoice. This is the norm for every “double-sided market” born on the Internet in which eBay pioneers.

Typically, these companies can take advantage of this high percentage because they add value to creating a trustworthy environment and providing trust services. “”However, this aspect can be restored by a peer-to-peer system. “Jackson explained. Users are motivated to validate new customers and freelancers as a complement to the community.

However, The system is not a decentralized autonomous organizationA nonprofit foundation takes care of some aspects of the system, such as accepting money. “But that’s just one of the many companies, people, or companies that help build this thing,” added Jackson.

Braintrust will not be completely indifferent either, since the foundation collects 10% of every customer transaction. However, the exact prices may change from the community.

Compound management model

Braintrust payments are made in dollars, although payments in cryptocurrencies are also accepted.

Braintrust token or trustIt only has the governance functionality. The owners can vote on important aspects of the platform: What kind of customers and talents have to be accepted, what characteristics have to be developed, how much should the platform demand?

Jackson hopes that the new model will promote a dynamic talent pool that is actively interested in improving the ecosystem.

“This new model that I’m describing is not possible without a token. The token, [y] A blockchain platform facilitates the exchange of intermediaries. “

Jackson announced that Robert Leshner, the founder and CEO of Compound, is the project’s advisor and investor. In addition, Braintrust uses a branch of the compound governance code to power its own systems.

Platform users receive a token for their contribution to itFor example, the evaluation of new candidates. In contrast to some DeFi protocols, however, it seems that the platform’s income is not distributed among the token holders. Jackson declined to delve into the token economy, although he promised that this issue will be explained when the company launches later in the year.

The Braintrust concept represents an interesting use of native cryptocurrency systems to solve real problems. However, it remains to be seen whether it will be more successful than previous attempts.