Support provided for SmarTrust in establishing a secure escrow service for Web3 freelancers by Reactive Network.
Freelancing Goes Decentralized: SmarTrust Takes on Upwork with Blockchain Escrow
The world of freelancing is about to witness a revolution, courtesy of SmarTrust, a Web3 platform that's set to shake up traditional freelancing platforms like Upwork with its innovative on-chain escrow system.
On Wednesday, April 30, SmarTrust was announced as the latest recipient of funding from the Reactive Network Developer Fund. This project is constructing a multichain escrow layer for Web3 freelancers and clients, based on Reactive Smart Contracts.
The upcoming network will allow clients to secure funds in smart contracts, which can be progressively released for payments. These smart contracts are transparent, programmable, and eliminate the need for centralized intermediaries. Plus, it comes with a built-in third-party dispute resolution mechanism, enhancing security for both freelancers and clients.
Web3 Meets Web2: Transforming Freelancing for Good
SmarTrust leverages Reactive Smart Contracts, providing it with a flexible, event-driven infrastructure that lets it span several EVM-compatible chains and even bridge logic and state across these chains. Emilijus Pranckus, Ecosystem Head at Reactive Network, explains the role Reactive plays in SmarTrust.
"SmarTrust is addressing a pressing, real-world problem by placing Reactive Smart Contracts at the core of their application," says Pranckus. "With this approach, they enable trustless mechanisms between clients, freelancers, and dispute resolvers in a scalable manner."
The global freelancing market has been growing in leaps and bounds, with the number of freelancers in the United States increasing by a whopping 90% between 2020 and 2024. By 2027, Statista projects that 86.5 million people in the US will be freelancing, making up more than half of its workforce. At the same time, the freelancing market is expected to grow from $6.55 billion in 2024 to $14.17 billion in 2029.
Web3: The Future of the Internet
So, what's driving this growth? Increasingly, companies are looking for a more agile workforce that can adapt and scale quickly. SmarTrust is poised to meet this need by offering a decentralized, secure, and efficient freelancing platform.
Here's how SmarTrust contrasts with traditional platforms like Upwork:
| Feature | SmarTrust | Upwork ||------------------|------------------------------------|---------------------------------|| Escrow Type | On-chain smart contracts[1] | Centralized third-party || Transparency | High (immutable records) | Limited (platform-controlled) || Fees | Network gas fees | Up to 20% service fees || Control | User-managed via crypto wallets | Platform-managed |
With its on-chain escrow system, SmarTrust aims to minimize human intervention, reduce counterparty risk, and optimize efficiency. If you're comfortable with blockchain technology and excited about the potential of decentralized finance, SmarTrust might be the freelancing platform for you. Otherwise, Upwork, with its familiar fiat-based workflow and integrated payment protection, remains a reliable choice. As always, the choice comes down to personal preference and comfort levels.
[1] Smart Contracts and Transactions:
- Smart contracts represent self-executing agreements based on code, enforcing predefined rules and conditions.
- Transactions are digital records of operations on a blockchain, such as sending digital assets (e.g., cryptocurrencies) or registering events on the blockchain (e.g., creating or updating smart contracts).
- The on-chain escrow system of SmarTrust, a Web3 platform, is designed to progressively release funds for payments, eliminating the need for centralized intermediaries like Upwork.
- The upcoming SmarTrust network, funded by the Reactive Network Developer Fund, will leverage Reactive Smart Contracts, providing a scalable and trustless mechanism between clients, freelancers, and dispute resolvers.
- By 2027, the global freelancing market is projected to grow, with 86.5 million people in the United States freelancing, making up more than half of its workforce.
- SmarTrust aims to minimize human intervention, reduce counterparty risk, and optimize efficiency with its on-chain escrow mechanisms, demonstrating the potential of decentralized finance (DeFi) in the freelancing business.
- In contrast to Upwork, SmarTrust involves user-managed transactions via crypto wallets, while Upwork manages payments centrally.
- To tap into the growth of the freelancing market, companies may prefer SmarTrust's decentralized, secure, and efficient platform powered by smart contracts and blockchain technology, if they are comfortable with these mechanisms.
