In 1827, Josiah Warner’s “Cincinnati Time Store” introduced the unsuccessful concept of “labor notes,” which sold merchandise in units of hours of work, and supposed to resemble paper money. However, a similar concept in 2018 attempts to execute a similar set-up, using cryptocurrencies instead of intangible time units.
Earn Cryptocurrencies Every Hour
The man looking to resurge the historical concept is Sergei Sergienko, with his global job-search marketplace LaborX, which is scheduled to launch its beta-version on May 24, 2018.
The concept utilizes a blockchain-based framework that matches employers with job-seekers and ensures hourly payments for every hour of work put in by a freelancer/contractor/employee. Additionally, Sergienko claims to have hired app developers across the globe, who have built a dataset of “hundreds of thousands of employees.”
The companies need not be limited to mainstream sectors like engineering and finance, as LaborX encourages even farmers and fruit pickers to advertise on the platform, and get paid in digital tokens instantly.
Speaking about the concept, Sergienko said:
“The way for people to be remunerated is based on pre-Industrial Revolution kind of wages – you spend the time in the factory, and you get paid,”
The entrepreneur added that the world had witnessed the change in just about every technology, process, or regulation, except the wage structure, which continues to conform to the 80’s ideals of getting paid on a monthly basis.
The app would initially be rolled out in Australia, which is seemingly on its way to embracing blockchain, cryptocurrencies, and related products, much before the majority of the world.
Creating Utility Value for Native Token
The application would process the payments via LabourHour (LH) tokens, which are offered by Sergienko’s other blockchain-based project, Chronobank, and are coded to be inherently stable.
Employees would be able to instant exchange their LH tokens for fiat on the LaborX exchange, making it possible to spend the money immediately from their credit/debit card, without waiting for a delayed bank wire process.
“A lot of what blockchain offers – and a lot of people misunderstand – is it offers quick moneys flows, or quick property flows, or quick valuables flows. That’s important when you consider a recent PayPal survey that showed 58 percent of freelancers have experienced non-payment in the past.”
The LaborX system makes further use of its blockchain and introduces a “tokenized reputation system,” which collates data from several similar job-workers and stores the collected data points on an immutable ledger.
The entrepreneur feels that weeds off poorly performing employees from the high-performers, and allows the latter to command higher wages, in addition to eliminating wage discrepancies and disputes.
The process is similar to Uber’s cab driver rating system, which gives extra incentives to drivers who maintain a high rating.
Regulatory Bottlenecks Slow Application Launch
Sergienko added that government regulations undeniably impede cryptocurrency projects, and often give mixed responses to ICO-related questions. The entrepreneur claims to have visited Armenia and Samoa, and “has an understanding” with the Estonian government, in a bit to launch his impending ICO. However, Sergienko has managed to adhere to timelines for application and exchange launch, notwithstanding the “slow moving” regulatory aspects.
File photo of Sergei Sergienko. Source: Business Insider