Blockchain – one of the most talked about technological revolution since the beginning of this year. Blockchain technology is the wheel behind the much-crazed Bitcoin and it has become potentially more important than Bitcoin itself.
The story of Blockchain
Cryptocurrency and Blockchain is closely linked with each other in the sense that without Blockchain technology, cryptocurrency will essentially never come into existence. Cryptocurrency was first proposed and published by a mysterious genius, Satoshi Nakamoto who right after the 2008 financial crisis believed that cryptocurrency could be the ultimate solution to a highly trustable financial transactions without the “middle man” which often are the erroneous humans and possibly corrupted institutions. All these rely largely on Blockchain.
To fully understand the way Blockchain works may require some mental gymnastics and understanding of intensive mathematical processes. However in its simple explanation, Blockchain is essentially an open digital ledger that effectively and permanently store transactions in form of a block and with a secure “key” that is unique to each new block. Each successful transaction is then verified by networks and networks of computers, making the process secured and protected from any falsification
Due to its effective, secured and decentralized nature, Blockchain could potentially transform various sectors from banking to shipping, supply chain, security, healthcare, real estates and more.
How can Blockchain be incorporated into HR practices
Like many other industries, HR is no exception to the transformative potential of Blockchain technology toward its practices. Below are several ways in which that can happen.
An error-free database
Imagine having a database of thousands and thousands of candidates with accurate and readily verified information that are completely secured. Perhaps with Blockchain in the picture, resumes may no longer be relevant. Candidates can write up their career updates throughout their work journey including what they have done into Blockchain and these information will be permanently stored and verified in the digital ledger. It is also possible that Blockchain can records performance, successes and shortcomings with feedbacks and references from employers. This allows the recruiters to effectively determine which candidates are the top performers, rising stars and those with high potentials. The recruiters need only pull up a candidate’s employment history from Blockchain and everything is all there!
Making efficient payments and automate taxes
Since every successful transaction made are effectively recorded in Blockchain, there is no longer the need to save up every receipts, every invoice and every purchases in an effort to track your expenses. Taxes can be automatically adjusted accordingly based on your income every year. Through Blockchain, overseas fund transfers to and from clients, partners and employees will be more secured and cost-effective with lower payments when making transactions in different currencies.
Smart contracts to replace paper contracts
Gone are the troublesome paper contracts that often get crumpled, torn and misplaced. Smart contracts are signed, verified and delivered digitally without any involvement from third parties and are effectively kept in record. This make offering and accepting job a lot more easier. Blockchain also allows both the employee as well as the employer to keep in check of any changes to the contract throughout the agreed upon working period. This could prevent any overlooked information and misunderstanding further down the road.
No more hassle in manual verification and referencing
Every recruiter knows the challenges and difficulties of verifying and referencing of candidates. It is at top priority for the recruiters to ensure that any data and details given by the candidates are genuine and authentic. However, there are cases in which identities, certificates and qualifications can be falsified and remain unnoticed for years. With Blockchain technology, all information are guaranteed to be secured, authenticated and verified, once a candidate stores his or her credentials in Blockchain, there is no need to verify the credential again.
There is absolutely not a shred of doubt that Blockchain will transform the digital world to a new era. Perhaps it may not happen within the next six months or a few years, but experts agreed that changes are certain. Whether HR are ready to adopt Blockchain into its practices remains a topic of discussions. Once we are ready, the changes could be monumental.