Etch claims to be the first evolution in payroll since the Industrial Revolution. Find out how the platform works today in our review.
What Is ETCH?
Etch aims to turn the logic of your employment contract into a smart contract. As you work, money flows into your Etch wallet. You can then spend that money from the Etch app or with the Etch payroll card. Etch pays you every second – not every week or every two weeks like traditional payroll platforms.
Overall, Etch wants to revolutionize the world of payroll. You can work and get paid in real time. By getting paid in “real time”, that means you can literally watch the money in your account add up as you work. The Etch.work official website features a clock counting by while a wallet below tallies the amount of money you’re making each second based on your wage.
Once the money is in your account, you can order an Etch debit card to spend your money. The card is linked to your account.
Etch is catered towards anyone who works an hourly wage. It claims to be “solving a problem for a billion people”, including anyone who works in “construction, cleaning, retail, catering, bar, care, auto, factory” and more.
How Does Etch Work?
Etch is a smart contract-based real-time payment platform. The platform aims to revolutionize payroll in a transparent, auditable, and fast way. The platform is built on top of the Ethereum blockchain.
Using Etch, you can watch the balance of your account rise as you work. That may not seem like a big deal, but it can lead to some nifty features – like buying lunch with money you earned that very same morning. It can also mean an end to the high-priced world of payday loans.
Overall, Etch is a shared financial ledger for the hourly wage industry. The whitepaper specifically mentions the construction industry, saying, “Because construction payments are so complex, our first step in automating these is with paying employees.”
Etch measures the criteria for payments to contracting parties, then makes agreed-upon payments. Etch will confirm someone’s location, for example, to verify they’re actually at work. To verify location, Etch will use wireless beacons that communicate with the blockchain. As someone’s location is confirmed, Etch makes payments in real-time.
What Problems Does Etch Seek to Solve?
Some of the problems Etch identifies in the construction industry and the hourly wage industry include:
Construction projects involve many contracts, with each contract containing separate payment obligations
Subcontractor’s employees rely on payments from their employer, while that employer may rely on payments from a higher tier subcontractor, who may require payment from a prime contractor, who looks to the owner for payment; if the owner doesn’t approve, or has a cash flow problem, then everyone loses
The complexity continues to build as new parties and contracts are added. At each point in the payment process, there’s opportunity for conflict; this creates a significant financial and administrative burden along with financial risk
Etch’s whitepaper cites an industry survey that found more than 25% of all subcontractors stated that timely payments threatened their business
Overall, Etch believes that owners, contractors, and employees can benefit from faster and more efficient payment processes. And Etch seeks to provide that efficient payment solution using blockchain technology.
Benefits Of Etch
Etch aims to provide the following benefits to different groups involved in the wage work ecosystem:
No More Payday Loans: Wage workers get paid weekly or bi-weekly. This can lead to cash flow problems as people wait for their next paycheck.
No More Non-Payments: Contractors and freelancers often find that their employer is unable – or unwilling – to pay, even after a project has already been completed on time. This puts contractors and freelancers at significant risk. With Etch, payment is assured in real-time.
Lower Fees: Cryptocurrencies are frictionless and borderless. You can convert Etch into any currency, digital or fiat, without costly international transfer fees. This could allow someone to send Etch home from abroad without worrying about international remittance services.
HMRC: Employers can automatically comply with HMRC obligations with deductions locked in a smart contract; this can reduce administrative overhead and streamline business efficiency.
Improved Payroll System: Reduce payment disputes between an employer and an employee with smart escrow contracts.
Easy to Use: Employers can manage employees through an online dashboard, set working hours and wages, and optionally verify employee presence using wireless beacons.
Available Across Multiple Sectors: The Etch whitepaper mentions construction workers multiple times. However, the platform is available in any industry.
The Etch Token Sale
The Etch token sale is taking place throughout October 2017. The ETCH tokens are ERC20 tokens built on Ethereum. The sale has a hard cap of 5 million, or 25,000 ETH fixed at 200.
There’s a total supply of 100 million ETCH tokens. 40% of those tokens (40 million) will be available during the token sale. 20 million tokens are kept by the Etch Foundation for 12 months.
During the token sale, 1 ETH will buy you 1,600 ETCH tokens. A token pre-sale took place in June 2017.
Who’s Behind Etch?
Etch is led by founders Euros Evans (CEO) and Tomasz Mloduchowski (CTO). Evans is based in Wales and London, while Tomasz is a London-based blockchain and infosec specialist.
Etch aims to change the way people get paid for their work. The company envisions a future where we get paid every second instead of every two weeks. You can watch your money collect in your account in real-time. You get paid in Etch, and then you can transfer that money around the world with minimal costs.
You can learn more about Etch or participate in the platform’s token sale today by visiting online at Etch.work.