by Jamie Holmes
ChronoBank, a blockchain platform utilizing time-based currencies for the labor market, has announced its LaborX exchange on January 20, and partnerships with the Changelly and Lykke exchanges, as well as Emercoin. In contrast to many ICOs, ChronoBank was born within an established business that has been in existence for almost a decade, with a strong focus on real-world problems.
ChronoBank is backed by leading Australian hire company Edway Group Limited. It’s ambition; to disrupt the recruitment sector like Uber disrupted taxi services. Recruitment agencies charge high fees to place candidates in business seeking suitable employees. A fee in the thousands is not unusual. For one hire, that seems excessively wasteful. However, ChronoBank is using the blockchain to disintermediate the recruitment sector, creating a decentralized mechanism so that employers can access and rank prospective employees.
Labour hour tokens (LH) will be received by employees, bought and sold by professional companies seeking services, as well as traders and investors who want exposure to a stable token that hedges inflation. These tokens can be issued on different blockchains, making their offering very flexible with respect to the progression of blockchain technology.
The LaborX Exchange hopes to reduce these frictions and transaction costs that are borne when recruiting talent. Employers can hire directly from those seeking work. Built on the Ethereum smart contracts platform, the LaborX exchange will include a decentralized reputation system so that employees are rewarded on their abilities and tenure.
Critical work on the LaborX Exchange is almost complete, including the development of reward contracts that pay out dividends to token holders automatically and exchange contracts, allowing users to trade different tokens.
As the blockchain recruitment platform enters the second month of its ICO, ChronoBank has also announced partnerships with Changelly, Emercoin, and Lykke. So far, the ICO has raised 1200 BTCs as well as a significant amount in altcoins. ChronoBank has also strengthened their value proposition thanks to venture capital funding of $1.1 million from AXL Strategic Partners, which specializes in areas such as a juridical and legal support and investment deals.
Mobile wallet and trading enterprise Lykke will allow users to trade ChronoBank tokens frictionlessly. Lykke, founded by former CEO of forex platform OANDA Richard Olsen, is part of the Hyperledger project and will also contribute to the development of the decentralized trading platform, the LaborX Exchange. ChronoBank CEO, Sergei Sergienko, stated:
“One of the reasons we’re thrilled to be partnering with Lykke is that commitment to making cryptocurrency accessible to new users. Since we are looking at mass-market applications for crypto tokens, it promises to be a very worthwhile partnership.”
Also, as part of a collaboration with Emercoin – a well-known and established cryptocurrency platform – they will focus on several elements of shared interest. Emercoin offers diverse blockchain services for businesses and individuals, providing a broad range of facilities that increase transparency and reliability. The collaboration with Emercoin is also anticipated to improve security and ease-of-use of their service significantly.
“Working with Emercoin to implement and further this suite of blockchain-based technologies will put ChronoBank in a very strong position to decentralize our infrastructure and provision of our services to the greatest extent appropriate – with benefits for uptime, security, and confidence.”– Sergio Sergienko, ChronoBank CEO.
ChronoBank’s new partnerships will no doubt galvanize their ambitions to disrupt the recruitment sector. Also, with extensive exposure to exchanges such as Lykke and Changelly, getting in and out of ChronoBank’s token will be vital to their future success. Investors and crypto-enthusiasts can still participate in the ICO here until February 15, 2017.