Decentralized blockchain networks prepare to disrupt talent markets
Decentralized networks, Crypto-currencies, Non-fungible tokens (TVN), Block chain, Bitcoin, Ethereum, DIFINITY, etc., are endless buzzwords in the media. However, behind the hype, many palpable applications are being developed using distributed ledger technologies such as blockchain, which are expected to open up new markets and operational business models; move the grip of the current centralized quasi-monopoly companies.
Internet giants like Amazon, Google, Facebook, Twitter, etc., are centralized aggregation-distributor platforms that collect, own, analyze and monetize user data through targeted advertising, product sales and services. Their size and near zero marginal cost allow them to provide their platform services to the far reaches of the globe. The constantly growing centralized data repositories give them an asymmetric advantage thanks to the advantages of the “winner who takes it all” and the near-monopoly power to reap superlative profits; and even control social discourse and narratives. Most aggregation-distributor platforms obtain user data for free, use it generously, and have exclusive access and use rights. In return, they offer egalitarian experiences on a global scale, resulting in exponential acquisition of consumers / users through network effects.
In the established Internet-based centralized consumer market value chain, aggregator-distributors split between upstream suppliers and downstream consumers / users pocket most of the money. For the first quarter of 2021, Amazon reported a profit of $ 8.1 billion; Google reported a profit of $ 17.9 billion; Facebook reported a profit of $ 9.5 billion; Twitter reported a profit of $ 68 million.
Emerging blockchain and crypto technologies facilitate decentralization equals (P2P) data networking, thus eliminating the need for central control and decreasing the value of aggregation-distributor platforms. These decentralized networks are spawning new business models of revenue sharing between upstream P2P content / data creators and downstream content / data consumers by distributing more of the profits currently monopolized by well-established centralized aggregator-distributors. Creators can now have the right to own and be remunerated for their data through smart contracts which pay automatically according to predefined conditions.
In these new paradigm-shifting business models, profit sharing can be done through tokens received from companies instead of network participation, content creation, labor, and acquisition. Tokens can serve as virtual stocks that appreciate as the underlying business succeeds and can be a compelling incentive for the adoption and acquisition of the business platform. As a result, businesses can quickly move from niche to mainstream through rapid turnover. virtuous circle.
Blockchain networks operate through decentralized protocols. Validation and record keeping activities are decentralized and automated by outsourcing the platform’s network users, thereby eliminating a central control entity. Consensus mechanisms determine the current state of the ledger. Applications based on blockchain technology can create many new disruptive markets; i.e. medical data recording / sharing, NFT markets, music royalty tracking, cross-border payments, decentralized finance Capacities (DeFi), real time internet of things Operating Systems (IoT), Supply Chain, Logistics, Voting Mechanism, Personal Identity Systems such as Social Security, Original Content Creation, Cryptocurrency Exchange, Real Estate Processing Platform, Talent Networks, birth, marriage and death registers, vaccination registers, etc. the TVN market jumped 2,100% to $ 2 billion in sales in the first quarter of 2021, and the DeFi Market is a market of around $ 100 billion.
As flexibility and independence become paramount, the Gig economy becomes a global pillar. According to a Intuit Report 2020, 80 percent of large U.S. companies plan to use a flexible, non-traditional workforce. More, Harvard Business Review reported that approximately 150 million people in the United States and Western Europe work as independent contractors. In an era of technological change, demographic shifts and economic uncertainty, companies seek to improve their competitive position by creating a flexible workforce.
The Covid-19 pandemic has accelerated the evolution of workforce skills and is moving towards an “on-demand” model. According to a Gartner Report, human resources (HR) professionals say 58% of the workforce needs to learn new skills after the pandemic. In addition, emerging technologies, changing business needs and changing demographics are altering the skill requirements of organizations, creating a perpetual talent gap. Companies can fill these critical skills gaps by leveraging global talent pools by taking a strategic and flexible approach “on-demand” labor model.
According to a Harvard Business School and Boston Consultant Group study, more and more companies are using and intend to use digital talent platforms to meet their talent needs and create an agile on-demand workforce model. Digital talent platforms with technological solutions such as Toptal, Catalan, Upwork, and Fifth, etc., act as a clearinghouse to connect highly qualified, capable and experienced people to work in fields as diverse as sales / marketing, finance, legal, project management, logistics , innovation and R&D.
Blockchain and artificial intelligence (AI) can improve talent acquisition for the on-demand workforce to the next level. For global job seekers, decentralized talent platforms based on a P2P network can help create an enduring verified provenance for academic and professional degrees, work experiences, referrals, intellectual property rights, professional certificates / awards, etc. and error-prone hiring processes through real-time automation of filtering, evaluating, scoring and matching job openings with candidates from diverse global talent pools. Machine learning and AI matching can limit bias (race, gender, age) and increase transparency during the recruitment process. The decentralized blockchain environment can cost-effectively provide a controlled global talent pool for permanent, contract and on-demand work by improving the quality of correspondence.
Talent platforms can provide suites of HR service plugins, such as recruiting, onboarding, payroll, benefits, training, accounting, compliance, and legal for companies that hire and self-employed workers. By delivering these disparate functions through a unified decentralized platform, talent networks can dramatically reduce human resource management costs and provide a seamless experience for workers together.
Decentralized applications (dapps) such as payment rails, Challenges, TVN, stakingetc., acting as support services to decentralized talent networks, can bring efficiency gains and economic opportunities to all participants. For example, payment rails can allow users to make P2P cross-border payments. Likewise, DeFi capabilities, including lending, borrowing, trading, and staking, can allow users to gain additional economic benefits.
Braintrust, a blockchain-based digital talent freelancer, connects technical and design freelancers with U.S. companies through a bidding mechanism. When companies using the platform hire freelancers, they pay Braintrust 10% of the bid amount as a fee.
Bondex, a decentralized talent ecosystem, relies on a global professional network powered by AI and using blockchain. The company will add services for network participants by releasing decentralized applications (dapps), such as payment rails and DeFi capabilities, etc. In addition, the company will share a portion of its income as a financial reward for its participation and investment in the ecosystem. “At Bondex, our users are not the product. They are real players in the growth and success of the talent ecosystem through tokenized revenue sharing mechanisms, ”said Ignacio Palomera, Chief Strategy Officer of Bondex. Unlike contemporary solutions and business models, Bondex’s reward system offers unique economic opportunities to participants in its ecosystem.
Through rich global P2P interactions, blockchain and crypto technology applications are poised to disrupt talent markets and meet the needs of the gig economy in the post-pandemic world.