HYVE – Catering to the Demands of the Fast Growing Gig Economy Using Power of Decentralization
Over the last few years, gig economy has seen accelerated growth and is a $100 billion industry with many businesses going digital thereby creating more online earning opportunities.
As per the research estimate, freelancing and gig working economy will be a $350 billion market by 2023. The Coronavirus pandemic has further boosted the gig working culture (remote working) and is likely to continue with market expansion at an unprecedented rate.
While the freelance workforce is growing fast with technological disruption, a Gartner research says that several freelancing platforms aren’t prepared for the imminent market changes ahead.
Even the legacy platforms with centralized frameworks have significant issues of high commission, vulnerable personal data, lack of flexibility, interoperability and slow settlements.
Introducing HYVE, a blockchain-powered community-governed ecosystem that leverages the power of decentralization and brings unique systems and mechanics that aren’t available to any of the existing platforms.
HYVE is a DeFi centric community governed autonomous ecosystem that solves some of the major issues of the existing freelance and gig market. Leveraging the power of decentralization, HYVE aims to change the dynamics of the global workforce by proposing a new model of collaboration. This model allows all gig participants to connect in a peer-to-peer fashion from all across the globe.
The Challenges of Centralized Freelance Marketplaces and HYVE Solutions
As per Gartner’s research, the traditional and centralized freelance marketplaces aren’t ready to handle the rapid changes in the gig economy. These platforms have limited solutions to offers, lack functionality and are confined to a narrow range of operations.
For e.g. most of the legacy freelance websites have their own dispute mechanism and support systems controlled by employees and organizations. However, as more and more gig participants join the ecosystem it will become overwhelming for the employees to deal with a myriad of issues involving different technical and bureaucratic challenges. Thus, having a manual dispute solving mechanism isn’t the solutions in the long term.
Besides, centralized systems provide freelancers little scope to move outside of their fixed model. This gives freelancers and workers little control over their tasks.
The HYVE Ecosystem has built a unique dispute mechanism in partnership with Kleros19. The mechanism is unbiased, faster and employs a sub-court system with jurors having direct industry connections. Similar to other participants, jurors are regular users that receive rewards for voting coherently or penalized otherwise.
HYVE also has a transparent feedback mechanism to build trust between freelancers and employers. Moreover, being completely decentralized, HYVE offers better security against data leaks and storage of sensitive personal information. HYVE uses the peer-to-peer hypermedia protocol called the InterPlanetary File System (IPFS) and offers asymmetric file encryption on a decentralized server.
HYVE platform solves one of the major issues of high fees and slow settlements faced in the legacy freelance marketplaces. HYVE uses smart contract systems to make instant and automatic payments upon completion of work. It eliminates any intermediary payment processor while delivering faster payments at near-zero fees.
The HYVE Platform and the HYVE Native Token
The decentralized HYVE platform is an open-source, flexible, and secure medium of connecting global employers and freelancers. HYVE platform architecture consists of three basic elements:
- Client: Its main role involves a better user experience and delivering out-of-the-box functionalities that won’t be possible with decentralized applications (DApps) built using the regular web browsers. The client also functions as a staking node, a wallet, or a smart batching engine.
- Protocol: A convenient way of implementing external tasks that are self-verifiable. The HYVE Protocol provides endless possibilities by allowing users to create specialized micro-task platforms.
- Core: The HYVE Core consists of a collection of smart contracts and standards that support the entire HYVE Ecosystem.
The decentralized HYVE platform has got its own native HYVE token that is useful for different governance and staking functionalities within the ecosystem. This is an ERC777 token compatible with Ethereum’s ERC20 protocol.
The HYVE ecosystem has partnered with Bithumb’s listing platform for launching its HYVE token. Two weeks back, it also entered a partnership with Gate.io.
The HYVE platform incentivizes listing creation by implementing a fee structure of payments tokens. The platform also rewards users in HYVE tokens for posting tasks and fulfilling them. There’s also some fee associated with listing tasks.
Conclusion
HYVE aims to build an ecosystem that caters to the demands of the widely expanding gig economy. It aims to build a transparent and unbiased way for freelancers and employers to interact while protecting their rights via its unique dispute resolution mechanism.
