How a Brazil-Based Blockchain Startup Hopes to Disrupt the Self-Employed Contractor Space
Crafty was built to emphasize the importance of a self-employed contractor’s reputation score.
PHOTO CREDIT: Getty Images
Dealing with contractors for home-related projects can be a major pain. These contractors, such as house cleaners, gardeners, carpenters, masons, cooks and caregivers, are typically chosen on a referral basis. Though this can be an effective way of selecting a work partner, there's also a chance for sub-par contractors to slip through the net.
This has led to the formation of sites like Angie's List so people can be a bit more comfortable when they select a contractor for a particular job. But sites such as that are, in the end, just another method of picking a contractor based on word of mouth.
But what if each contractor out there received a permanent reputation score that could not be altered and gave prospective customers an accurate measure of their prior performance?
Enter the blockchain.
The tokenization attached to many blockchain-based ventures is a compelling feature with many possible uses. This is a dynamic capability that goes beyond the highly-touted blockchain benefits such as decentralization and quick payments. The permanent, distributed nature of tokens makes them ideal to be used as a measure of reputation. This is something that startup Crafty (crafty.work) is hoping to accomplish with its ecosystem that focuses on connecting individuals with contractors to supply work for home service projects.
Through its network on the Ethereum blockchain, Crafty seeks to empower users to get an unbiased portrayal of the reputation of a particular business when it comes to their work product and service level. This is also beneficial to quality contractors who are looking for a way to stand out from the crowd. The goal is to push contractors, more typically known for their crafts than their innovation, to be entrepreneurs as well and earn a reputation score that will continue to drive business their way.
On the front end, Crafty is a peer-to-peer electronic catalog of professionals who offer their skills to users who are looking for that specific line of work. The customer will choose professionals and pay them directly, without any fee to a middle-man. After the services are rendered, both parties will evaluate their counterpart and receive CFTY tokens. The CFTY may then be used to pay for services and products of partners, essentially creating a new economy for the exchange of these types of services.
The platform itself is free to use and there are no transactional costs. The founders' hope is that there will be value attached to the tokens created, which they will eventually be able to cash out as a form of compensation for creating and supporting the ecosystem. The team and founders will keep 14.5% of the tokens from the initial Crowdsale and will have a lockup period of 1 year.
Crafty was started in Brazil, but the founders hope that it will scale far beyond Brazil's borders in the near future.