Blockchain has the solution to the problems of Freelancing platforms

A new company seeks to change the way independent talent and their respective clients meet, through a community-led platform. To achieve this, the project will have its own governance token.

The central idea of the platform, known as Braintrust, is to eliminate intermediaries in the process of hiring highly qualified candidates for contract and freelance work, mainly in the IT industry.

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Unlike the multiple versions of this concept born in the era of the initial offer of coins, Braintrust does not force users to use their own token to make payments. Instead, it borrows some concepts from the governance of DeFi, and especially from Compound, to create a community-managed platform.

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

Better incentives

Jackson believes that existing independent professional grouping platforms, such as Upwork and Fiverr, suffer from fundamentally misaligned incentives between platform owners and their users:

„Their job is to connect the buyer and the seller, the company and the talent, and then facilitate the transaction. Then charge as large a fee as possible as a percentage of that transaction“.

The fee that freelancers have to pay is usually around 20% of the total invoiced. This is the norm for any „double-sided market“ born on the Internet, with eBay pioneering that model.

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Typically, these companies can benefit from this large percentage because of the value they add by creating an environment of trust and providing escrow services. „But that aspect can be recreated by a peer-to-peer system,“ Jackson explained. Users will be motivated to validate new customers and freelancers as additions to the community.

However, the system is not a decentralized autonomous organization, and a nonprofit foundation will take care of some aspects of the system, such as accepting money. „But that’s just one of the many companies or people or entities that are helping to build this thing,“ Jackson added.

Braintrust won’t be entirely indifferent either, as the foundation will collect 10% of each transaction from customers, but exact fees are subject to change by the community.