The Solution

Blockchain.

Why Blockchain?

• Blockchain enables a global, permissionless, digital layer for token distribution

• Blockchain offers access to a shared, open, data layer as opposed to hoarding data in a proprietary database

• Blockchain allows users to be collective owners in the platform’s success

• Blockchain helps bootstrap the marketplace through in-protocol incentives

• Blockchain primitives such as NFTs, on-chain credentialing, and wallet-based-identity enable an experimental experience for users to build the future of work

Prism aims to establish trust between transacting parties by signaling experience/ quality/ reputation, or "proof-of-merit," instead of proof-of-work or proof-of-stake. This will be achieved via verified referrals, staking, reviews and other transactions, enabled by blockchain technology.

What is Blockchain?

• Blockchain is a type of shared, or distributed, database, also known as a ledger. Wherease a database usually structures its data into tables, a blockchain structures its data into chunks (blocks) that are then linked together via cryptography.

• As new data comes in, it is entered into a fresh block. Once the block is filled with data, it is chained onto the previous block, which makes the data chained together in chronological order.

  • Different types of information can be stored on a blockchain, but the most common use so far has been as a ledger for transactions.

• To validate new entries or records to a block, a majority of the decentralized network’s computing power would need to agree to it. To prevent bad actors from validating bad transactions, blockchains are secured by a consensus mechanism such as proof of work (PoW) or proof of stake (PoS). These mechanisms allow for agreement even when no single node is in charge.

  • Proof of work (PoW) is a decentralized consensus mechanism that requires members of a network to expend effort solving an arbitrary mathematical puzzle to prevent anybody from gaming the system. Proof of work is used widely in cryptocurrency mining, for validating transactions and mining new tokens.

  • With proof-of-stake (POS), cryptocurrency owners validate block transactions based on the number of coins a validator stakes. The next block writer on the blockchain is selected at random, with higher odds being assigned to nodes with larger stake positions.

• Decentralized blockchains are immutable, which means that the data entered is irreversible - permanently recorded and viewable to anyone.

• In Bitcoin’s case, blockchain is used in a decentralized way so that no single person or group has control—rather, all users collectively retain control.

To date, blockchain has been primarily applied to digitally native financial capital where all transactions are completed on-chain. Since the “real” work between talent and clients must be completed off-chain, there is friction establishing trust at scale. However, we propose building a blockchain for human capital as a proxy for time-consuming and costly relationship building.

Furthermore, smart contracts executed on the blockchain automate many processes that burden today’s recruitment cycle from data entry to payments. These potential time savings translate directly to platform cost savings, which can be passed along to users through lower fees.

What are smart contracts?

• Smart contracts are self-executing lines of code with the terms of an agreement between buyer and seller automatically verified and executed via a computer network.

• Smart contracts deployed to blockchains render transactions traceable, transparent, and irreversible.

To support a forward-looking perspective, we advocate that all users begin with a tabula rasa, a clear record. Users will then build their verified experience and reputation on the Prism chain, rather than retroactively populating a profile with potentially biased information. This also bypasses the need for third-party credentialing services that may have alternate views on data privacy and ownership.

NOTE: Reputation applies to all stakeholders on the Prism platform including: freelancers, clients (indiciduals engaging freelancers on behalf of companies),companies and connectors.

Lastly, blockchain establishes the framefork for more efficient governance. Corporate governance has traditionally prioritized shareholders at the expense of other stakeholders. This has led to the extractionary tendency of many marketplaces including LinkedIn, UpWork, and Fiverr. The aforementioned charge high fees to drive share value, not to benefit users that create said value. Prism will be a community-first platform, therefore, our goal is to create a DAO that gives control to the most active users.

What are DAOs?

• A decentralized autonomous organization is an entity structure in which tokenholders participate in the management and decision-making of an entity.

• There is no central authority of a DAO; instead, power is distributed across tokenholders who collectively cast votes.

• All votes and activity through the DAO are posted on a blockchain, making all actions of users publicly viewable.