Blockchain has generated a lot of buzz over the past few years as some cryptocurrencies and non-fungible tokens (NFTs) saw their values skyrocket. However, the distributed ledger technology that underlies blockchain has the potential to be used in more than just currency and digital art ownership.
San Francisco-based Braintrust is using blockchain to create a decentralized talent platform where the users determine its future. It does so with its own BTRST tokens, which represent ownership of the platform. Users earn BTRST by helping the network grow. For example, referring new talent or clients to Braintrust will reward freelancers with a percentage of the new talent or client’s project value as BTRST. Vetting talent and taking courses through Braintrust Academy can also reward freelancers with BTRST. The tokens can be used in a variety of ways, the primary of which is voting for community proposals designed to improve the network.
Ownership incentivizes users to improve the network by adding new clients and quality talent, enabling Braintrust to become a self-sustaining network. Whereas most traditional talent platforms profit from charging user fees, Braintrust only charges a 10% fee to clients — lower than many major talent platforms and staffing firms. Meanwhile, workers keep 100% of their earnings, which can be substantial with an average job size of more than $50,000. Furthermore, companies can be matched with a freelancer in only 48 hours.
So far, the results of this innovative talent platform are promising. Since exiting stealth mode in June 2020, Braintrust has seen its gross services volume grow to $28.2 million from $1.2 million. There are now 474 clients using Braintrust, up from 63 in June 2020, including Fortune 500 companies such as Goldman Sachs, IBM and Nike. Continued adoption by large enterprises such as these will be crucial to Braintrust’s success.
Another encouraging indicator is that the number of freelancers has swelled to more than 36,000 from 2,194 over the same period. This activity has caught the attention of institutional investors: Braintrust recently announced two prominent investment management firms purchased $100 million worth of BTRST tokens.
Braintrust has an ambitious growth strategy. Among the list of initiatives is adding more perks to the BTRST token and expanding into all types of knowledge worker skill categories (currently, Braintrust only serves IT and design jobs). Of course, these proposals will have to be approved by the users themselves.
“I am looking forward to and excited about the future of Braintrust, which is created by users in the future, and I believe users will make the best choice,” says Gabriel Luna-Ostaseski, co-founder of Braintrust. With a rapidly growing user base committed to improving the platform, Braintrust’s novel approach is shaping up to be a bright idea.
The Buzz
Traditional talent platforms profit off their users by charging fees and taking away from freelancer earnings. Braintrust promises to put its users’ interests first by creating a decentralized network where users make the rules, creating a platform that benefits freelancers looking for the best gig and companies in need of top-notch talent.
