Today's workforce is really as centralized as it could possibly be. In accordance with a written report by census.gov, 51.6 percent of the US population works at large enterprises. To be able to increase efficiency in terms of possible, these corporations usually have large headquarters and rigid lines of command. However, with the advent of the net, there is a strong shift far from this model, towards freelancing.
This semi-decentralized kind of work has caused it to be possible to accomplish certain tasks much more effectively.In addition it enabled businesses to massively cut costs by centralizing only key operations. Companies like Uber and Airbnb have previously effectively applied this model and disrupted entire industries in the process. Recent advances in Blockchain and Smart Contracts now allow it to be possible to push freelancing to another location level by building truly decentralized workforce networks.
Decentralized workforce
A decentralized workforce is just a network of workers that isn't managed by a main authority and thus does not have any point of failure. That is distinctive from traditional freelancing where freelancers submit their work to an employer who must approve the work before disbursing payment.
Smart Contracts and Cryptocurrencies enable us to create decentralized and self governing workforce networks. In these ecosystems, employers post tasks and any worker can complete them. A completed task would then be verified by several other workers in the network who then determine if a payment is disbursed or not. The payment should follow automatically, either being paid out directly by the Blockchain or by way of a smart contract.
Probably the most efficient compensation model is one where workers are covered the completion of highly specific tasks. This technique is comparable in lots of ways to bounty posters in the Old West; The federal government posts a ‘Wanted'bounty for a criminal and sets an incentive, bounty hunters catch the criminal and the sheriff confirms the completion of the bounty.
It is essential to notice that decentralizing workforce might not be the correct selection for every job. Decentralization is particularly powerful for tasks that may be easily checked or that could take advantage of crowd wisdom. Online marketing, consulting and software development are a number of the industries that could hugely take advantage of decentralized workforce.
Some big challenges
The biggest challenge in a decentralized workforce network is reviewing the submitted work. The only method to create this kind of review system work is by incentivizing other users to test the task of these peers and to notify a good contract if payment must be disbursed or not. A vital problem that will arise from this kind of system is honesty; users that review submissions have to be incentivized to take action correctly. Otherwise, if inferior work keeps released, the employer's reputation might suffer.
One particular platform already exists, allowing anyone to create and complete bounties, and automatically sending submissions to be reviewed by other users. These ‘job reviewers'need certainly to stake a number of the platform's tokens for performing verification. If their review doesn't match the main one produced by nearly all verifiers, a percentage of the staked tokens are burned. It has some similarities with the Evidence of Stake algorithm proposed by Ethereum.
It may also be difficult to setup an effective rewards structure. A method must be created where the cash flows automatically from the employer to workers and reviewers, in a decentralized and trustless way. Traditional fiat money might never get ready to be integrated in this system. However, currencies like Ethereum or Bitcoin already are.
A bright future
The popularity of online freelance work has exploded previously years as a result of advantages it gives both to workers and employers. The next thing is to fully decentralize this industry to be able to remove all its points of failure. At this time, roughly 40 percent of the world's population has a net access. As the rest of the 3.5 bln people come online, the Blockchain will play an essential role in coordinating this emerging workforce.
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