ChronoBank is creating a global blockchain-based labor hire company

Rage Comment : ChronoBank wants to build a decentralized global time bank network where people can trade their time and skills, and use Labor-Hours tokens to solve the transaction fee problem. The biggest difference between this and traditional time banks is that in traditional time banks, one hour of cleaning work is equivalent to one hour of lawyer work, while this network can distribute labor tokens by profession.

Translation: Nicole

ChronoBank is a technology company that enables people around the world to trade their time and talents through a decentralized global network.

The core concept of time banking is that labor time is the most important commodity for people. Time-based currency and labor have existed for more than a century, but the concept is limited in application by the problem of the fungibility of labor assets. Usually this concept is applicable to small communities where neighbors can help each other, or it can only be limited to charity and volunteer services.

Australia’s ChronoBank, which has connections with many recruitment companies, is tackling the labor replacement problem by using its own Labor-Hours (LH) token on the blockchain.

ChronoBank CEO Alexander Rugaev explained how it works:

“The main difference between us and traditional time banks is that in traditional time banks, the price for an hour of work is the same for any type of work, so an hour of cleaning work is equivalent to an hour of lawyer work.”

“But we have now amended that so that we treat labour time as a stable currency, with the price of labour time being equal to the average hourly wage in the country. The UK labour time will be equal to the average labour cost in the UK – which I remember was about £14 – and if they want to trade their time, they will refer to the market price.”

This means that if the salary of a British lawyer is between £100 and £200 per hour, this is equivalent to 20 hours of labor time. Rugaev believes that pegging prices to market labor can solve the volatility problem brought by cryptocurrencies. He believes that the Labor Time (LH) token will become the most sustainable stable currency on the blockchain so far, thus replacing the euro or US dollar printed on the blockchain and using paper money as collateral in bank accounts.

Alexander Rugaev

Rugaev said:

“We don’t use any bank accounts, all consumer transactions are calculated in LH, and we can trade these tokens on the blockchain, which promotes its liquidity. We issue our time tokens not through banks, but through major recruitment and labor employment companies.”

As previously reported by Bitcoin Magazine, ChronoBank is associated with the WAVES blockchain platform and has some of the best Ethereum engineers in Australia. ChronoBank has strong ties to the recruitment industry. Initial companies that have agreed to use LH tokens to reward employees include Anderson Recruitment and Training, Host Group/Host Labour Hire, AES Labour Hire and Edway Labour Hire.

Rugaev said:

"We want to make short-term recruitment as profitable as permanent recruitment and one of our founding members is Edway Group Ltd, one of the largest labour hire companies in Australia, so we know exactly what the market needs and how to meet that demand. We will be very careful in selecting the companies that provide people with labour hours."

The entire ChronoBank project is divided into two parts. The first is to issue tokens; the first is a crowdfunding token, which will be issued in an ICO in December. After that, ChronoBank will create software - ChronoWallets, LH debit cards and middleware for crypto transactions to provide liquidity - aimed at facilitating the use of LH as a national labor token in Australia, the United States and Europe.

The second phase is to create Labor X, a marketplace where people can trade their labor and labor time, which Rugaev calls a “financial hub.”

“We expect to complete LH in September 2017. Once the first phase is completed, we will develop Labour X, which is the most strategic and important component and is expected to take several years to develop,” he said.