Trust & Security

Increased Trust and Security

Blockchain facilitates peer-to-peer transactions, thus excluding a third party necessary to approve them. However, freelancer platforms can migrate to blockchain and still play a significant role. After all, freelancers and buyers still need a venue to meet, discuss business, and exchange skills for money.

Two parties can use smart contracts to exchange money for freelance work on the blockchain. A smart contract is a self-executing and self-enforcing agreement containing terms and conditions. Once both parties agree on something, the blockchain stores the contract making it almost risk-free to modification or hacking. A smart contract can store assets securely until both parties meet the predetermined requirements. For instance, it won't release a freelancer's pay until they deliver the work per their agreement with the buyer. Conversely, it doesn't release the work to the buyer if the latter doesn't make proof of payment. Simply put, a smart contract can act as a peer-to-peer escrow service between two parties without third-party involvement. Lastly, smart contracts do not have fine printing. All their conditions are transparent and available for every relevant party to see. Therefore, businesses and freelancers cannot scam each other or include hidden terms in their agreements. In return, they both benefit from a more trusting and secure work relationship.