Since really long time, the Freelancer industry is growing. Different webpages are growing and connecting the demand with the offer, and vice versa. But not everything is perfect in the freelancer sector. Different problems arise. Coinlancer is a blockchain solution to these new problems that wants to change the way in which the freelancer world works.
Coinlancer is an Ethereum based freelancing platform which uses blockchain technology to create a more meritocratic freelancing ecosystem. With an Escrow mechanism, the intention is to build a platform that is fair to both clients and freelancers. In this way, problems would be reduced and a healthier freelancer sector would grow.
Despite the risks and the problems that can appear on the way, the freelance industry is a really lucrative one. As described in Coinlancer’s white paper, the entire industry generated an estimated $3.2 billion dollars. Upwork, one of the most popular platforms in the workspace, recorded $941 million dollars in freelancer earnings.
But we are far away from reaching the top. This sector can grow further considering the rate of population growth and the increase in internet literacy. In the next six years, is expected to grow $10 billion dollars annually. This is why measures should be taken as soon as possible to face the challenges presented to the freelancers.
Problems and Issues with Current Freelance Sites
Freelancers tend to lose about 10% of the amount paid by the client to the website. In the case of Upwork, the freelancer needs to pay to the site 20% on the first $500 dollars earned. 10% if the amount received is between $501 and $9.999. And 5% if the amount is $10.000 and above. With this structure, when an enterprise takes several freelancers to work for it, they need to pay 20% of fee to the website.
Another issue faced in this industry, is the safety of the funds of the clients and the freelancers. Coinlancer is able to solve this problem by the use of multisignature escrow. In this way, the funds for the freelancer, the client and the facilitator remain safe. In addition to these problems mentioned, another concern is the identity theft. When hiring people on freelance websites the situation exposes the participants to the risk of identity theft.
To attack the traditional problems that freelance platform have, Coinlancer has some ideas.
1. No Suspension of User Accounts
Some freelancers are often suspended because the account violates the platform policies. In most of the cases, the suspension causes remain ambiguous. And this is not the only problem. When trying to recover the account, the freelancer needs to be involved in tedious procedures that makes the whole experience even more difficult. It does not work in this way in Coinlancer. No unannounced suspensions occur on Coinlancer. The freelancers Tribunal decides on accounts that are deemed violent and fairly decides on it.
2. Fair Dispute Settlements
The dispute settlements involve surplus arbitration costs and unfavourable binding decisions; witch may not be in the best interest of a freelancer. On Coinlancer, the discretion to decide on the arbitration of disputes lies with the Freelancers Tribunal. Every Freelancer within the tribunal is mandatorily a freelancer with a high profile ranking.
3. Secure Payments
Delays in the payment or no payment at all are typical problems in freelancer platforms. Sometimes, the client does not receive a good quality work and, in other cases, the freelancer does not get paid at all. In Coinlancer, the use of the Escrow Payment System allows to hold the contract fees until the set obligations of the contract are met. When the project is complete, the funds are released securing the interests of both the parties involved.
4. Less Transaction Fee
As we mentioned above, some freelancing platforms require a freelancer to pay a 20% fee to the site. This can be traduced in huge earnings lost. As Coinlancer is built on the Ethereum network, payments are faster and reduce the transaction charges due to the lack of bank transfers. In Coinlancer there is only a 3% fee.
5. More than 20 Cryptocurrencies Accepted
Coinlancer offers more than 20 cryptocurrencies. In this way, it provides the flexibility to transact or convert any desired cryptocurrency.
6. Identity Theft Elimination
The Ethereum network allows for assigning usernames to individuals, eliminating the need to tie them to their actual personal information. The personal information is only known by the “site administration”, technically the network. In this way, the pay-outs are done to authentic freelancers.
7. Elimination of Fake Reviews
Some freelancing sites allow individuals with a unique identity and email address to write fake reviews. Coinlancer, with the Ethereum platform, builds checks and balances in the system. It has a special software that detects suspicious reviews and removes the fake ones.
8. Unbiased Dispute Resolution – Freelancers Tribunal
Some works are subjective, creating discrepancies across the platform. The Ethereum based platform confirms a fair control by means of a Freelancers Tribunal into our system. The tribunal is conformed by high-profile ranking freelancers. They get involved in the settlement of disputes. Every freelancer in the tribunal is entitled to cast a vote that favours the rightful party. Consequences are executed according to the Freelancers Tribunal.
Coinlancer is the native token of the platform. With this token the 3% Escrow fees will be paid in the platform. The usefulness of the token will grow as the freelancing platform becomes more popular. The value of the token would increase as well as the demand for it.
In addition to it, it can be used to pay the 3% Escrow fee, it can be a payment option across several e-commerce platforms and processors and would be tradable across different exchanges. There will be only 300 million pre-mined Coinlancer tokens available during the ICO.
Initial Coin Offering
The ICO is developed in the Ethereum platform, was launched on October the 14th and the token distribution will be divided as follows: 93% for the users, 5% for the team and 2% for Bounties.
Coinlancer Pre-ICO began on October the 4th with a 25% discount on the tokens. The ICO began on October the 14th and finishes on November the 15th.
Team and Future Work
Ian Vineer is the CEO of Coinlancer, Charles Voltron the CTO, Rushabh Shah the CFO, Konstantin Oleshko the Project Manager, Sergei Vasylchuk the Advisor, Amarjit Singh another Advisor and Katrina Arden the ICO Legal Advisor.
The intention is to create an efficient freelancing platform. Once the goal will be fulfilled, the plan is to venture into the broader online labour market of BPOs and KPOs.
For further information, you can visit the Bitcointalk thread related to Coinlancer.