Added by Kanika Sanon in Freelancing
There is a lot of chaos around cryptocurrency and its use. Cryptocurrency is a kind of digital currency which uses cryptography to carry out transactions effectively and reliably. Cryptocurrencies in freelancing can be blessing in disguise with its safety and security features. Cryptocurrencies use decentralized in contrast to centralized banking systems or digital money systems. One can classify it as the money of the future. They use DTL( distributed ledger technology). In simple terms, this technology does not use a central data storage system.
Image Credit: blockgeeks.com
It is a consensus of replicated, shared data spread across sites and countries as well. It uses a P2P system. In a peer to peer system, every peer is equally privileged. There is no single “main” system which contains all the data.
Cryptography is the process of transforming legible information into an almost uncrackable code. It uses this method to track purchases and transfers. Cryptography is the transformation of easily readable sentences to what seems to be “nonsense” to the human eye.
Cryptocurrency also has a fair share of controversies following it around the globe. It has bought a complete 360-degree turn to the financial system and has affected many transactional systems. It has already started to show a significant effect on the growing freelance system.
The speed of across the street and across the seas transaction has none to a minute difference. The transactions are carried out in seconds and are also confirmed in a few minutes. This helps freelancers across the world to connect with companies in different countries without worrying about international transactional problems.
The transactions happen on a global network. But in some cases, the id proof and the address proof take time to be verified. You can contact brokers for daily transactions. They also come at a specific cost.
These brokers like Bitpanda or cubit offer a video verification that takes about 10 minutes.
Satoshi Nakamoto is the inventor of bitcoin. To avoid forgery in the system he has used the SHA 256 Hash algorithm. The cryptographic system uses a peer to peer system which is highly decentralized. There is a chance that someone creates a number of peers and carry out forged transactions.
This technology introduced protects the transactions and avoids theft and problematic situations. A freelancer who has to carry out regular transactions can be benefitted by this method.
A freelancer’s actual payment and profits depend on how well the currency is doing in the market. You should consider this point when you are working with an international client. The rate or price of bitcoins keep rising and falling drastically. The payment through this blockchain technology can be very risky as well.
If you are an investment enthusiast and do this very often, you can invest at a proper time. This will keep your spirits high and because of this, you can have a good profitable amount in your pocket. The use of cryptocurrencies in freelancing can also turn into a nightmare for you and your finances. You should be careful because these transactions are risky.
Many people steal freelancer’s work and name it as their own. Someone might copy a writer’s article and present it as their own. The usage of cryptocurrency as a transactional basis is good because it ensures that this doesn’t happen.
You can make a transaction through cryptocurrencies in freelancing. You are also able to store the portfolio data to the blockchain. In addition to this, all the work you have done will be yours forever. You would have a global secured proof of your work.
This means that you don’t need to fret about plagiarism of your work because it is one of the main troubles freelancers worry about. In conclusion, the work you create will have your name on it.
Smart contracts help you exchange property, shares, and anything of value without having to deal with a mediator. These smart contracts are safe because they define rules and regulations that the contracts follow.
In simplified terms, if someone of the two parties breaks the contract the consequences as per the rules are applicable. This also shows that cryptocurrency based contracts are secure.
Image Credit: blockgeeks.com
The coding in cryptography is so confusing that no one, not even the creator of bitcoin can revert the transaction once made. Hence, no method of inversion can revert the transaction.
The information revolving around the transaction is free from the chaos of bank transactions. The information regarding the transaction remains between the peers involved in the transaction.
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