*The interview with Crafty ICO is a sponsored post as part of our ICO Whitelists Insider series.
In a bid to cut out the middle man between self-employed workers and customers looking for a service, Crafty ICO will be launching a decentralised platform which aims to revolutionise the market by allowing users to earn tokens through reviews.
With a view that success isn’t directly linked to reputation anymore, due to the increasing costs of advertising for the self-employed worker, Crafty aims to reintroduce the importance of reputation in a bid to stop ‘burning money’.
“Did you know that in Brazil, only 23% of the money a customer is paying for a service goes to the actual worker?” says economist and Chief Knowledge Officer at Crafty, Normann Kalmus.
There are 22 million self-employed workers in Brazil – many of which, they believe, would benefit from a system which cuts out the middle man.
“77% of the money you’re going to pay for hiring a plumber, maid or electrician is actually going to a company, advertising or into taxes,” he adds.
According to Kalmus, due to recent legislations within Brazils to tighten labour laws, many people can no longer afford to hire maids.
Tackling issues of unemployment
“We had a huge unemployment of family maids, because people simply couldn’t afford the maids anymore. The intention by the Brazilian government was good, but the problem was that congress forgot to ask the people if the families hiring the maids could afford the costs,” he explains.
CEO and founder of Crafty ICO, Reinaldo Silva, who is a graduate in Computer Networks and a former CEO of technology companies, was the founder of the idea.
He was discussing the issues of hiring a maid with his friend and singer Ricardo Mariano – now also an advisor and ambassador of their test platform Diarissima – because Mariano needed a maid to look after his house.
“Mariano said to Silva ‘because you work with technology already, why don’t we create an app in order to reach maids who can clean the house?’,” says Kalmus.
“They realised that all you really need to know is if the person is trustable – if you can just leave the house with this person, alone. So Silva called me up and asked me what I thought about the idea of the platform, and due to the recent legislations in Brazil, I realised it was a good option.”
Silva and Kalmus are now joined by a large team which is comprised of people with backgrounds in computer science, Al, Information Security, software engineering, law, public management – to name a few.
A test platform for Crafty ICO
As a result of this, the idea for Diarissima – a platform and app successfully used throughout Brazil to facilitate encounters between maids and customers – was launched.
“But it wasn’t just a problem for the maids – you’re going to have this problem everywhere,” says Kalmus. “Whether they are plumbers, painters, electricians – you’ll have this in all kinds of professions.”
And in the Diarissima platform, which has been in use for over two years, they can see that the idea is working.
“We learnt a lot about how people relate to each other,” says Kalmus. “We have very good examples – very touching examples, in fact – of people who use the app and channel their lives for the better.”
He adds that originally, in small towns, you’d ask around for recommendations on who to use for these services, such as your mother or neighbour, but that’s not possible in larger cities.
“That’s why people go to companies, because they don’t know who to call. And this is a big problem, as the company takes the majority of the money.
“In turn, no one in satisfied because they’re burning money to do something, and the people who are hiring – the customers – are paying too much money for the service. That means we have a very large amount of money simply being lost in this operation.”
The utility of the token for self-employed workers
Crafty ICO aims to be the first free platform for self-employed workers on the blockchain, and an evolution of the original Diarissima platform.
Every time a worker or customer leaves a review – because it works both ways in Crafty – they are rewarded with CFTY tokens, which in turn ensures currency circulation.
Drawing comparisons to Uber in the way that customers leave reviews, Crafty is unique in the sense that it is an entirely free platform for all of its users.
Reliant on the blockchain
Kalmus explains that it was important to them to not just develop and launch the system as a great idea, they also wanted to make the people a part of the system itself.
“When you have these tokens to receive, you are part of the entire business. With tokens, we move to another very important change. They become the internal point and the internal value of the system.
“The plumber is not just there to receive money for installing a shower, but after the contract is done, he is going to receive the tokens as an additional reward because he made an evaluation of his customer,” he adds. “This is only possible because of the ICO.”
The core value of the platform: reputation
“The point of our service is reputation, because this is a very important thing all over the world,” explains Kalmus.
“But reputation is starting to be less important to people in order to be successful. Success doesn’t have a straight relationship with the reputation anymore, because of the huge costs of advertising.
“We want to take this back and reintroduce reputation, as it doesn’t have any relationship with the economic power of the people when you take out the costs of the transactions,” he adds.
Kalmus explains that when people put their trust back into reputation, which through reviews are registered on the blockchain, they can in turn put their trust into the blockchain.
“Most importantly, we are going to change the way that people are doing business – not just in Brazil, but all over the world. We don’t need any more middlemen.
“We want to change the world,” he adds.