How Blockchain Will Change HR industry forever ?
Mar 18, 2018 Posted / 7408 Views
After the Global financial crisis in the year 2008, a mysterious white paper emerged from an anonymous group of people naming it as Satoshi Nakamoto.
In which a new peer to peer financial system was discussed. It was to use a digital cryptocurrency called Bitcoin which used an amazing technology called the Blockchain Technology. Blockchain uses a decentralized system. At that point of time, it was an omen to the people, because they were sick with a centralized power playing with the economic system.
In simple words, blockchain is a continuously updated record of who holds what. These records are split into linked blocks which are in turn secured through cryptography (securing through code/math). List of records is collectively known as a distributed ledger, which is decentralized and available to everyone to see and verify facts.
So in a scenario where any of the personal computers are hacked or corrupted all the other neighboring nodes of the system which has the consistent data sends an error message which confirms that the data has been corrupted over there.
Well, let us jump onto discussing the amazing applications of blockchain Technology. Consider another few practical problems you have today. How do you know that a particular identity on the internet is true or fake? How do you know that the document of the car which you are going to buy is a fake one or real? Similarly in the HR industry when an employer wants to hire an employee how does he/she confirm the identity, qualification, nationality, certifications, and skills of the employee. The collective solution to all these problems lies behind the concept of Blockchain Technology.
For example, in the HR field, the blockchain technology is applied and a public ledger is maintained for a particular person at all the places. For example, University, Training Institute, previous employer, and Government are connected to each other along with the employee's identity. So the employee's identity is available in the university, in the training institute, in the previous employees data in common so when an HR manager is about to hire a person he or she can verify his identity very easily because all these institutes have that particular person's identity which can be trusted because the concept behind the Blockchain technology is that the data is immensely consistent. Which in turn helps the employer to validate genuine information.
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And the process of hiring someone is also a very tedious process. It has a number of steps.
The employee has to fill up the job application and has to do a lot of paperwork.
The employer must verify all those details entered by the employee.
An interview is done so as to completely verify whether the person is suitable for the position or not.
But if the blockchain technology is being applied in the HR field then all of these steps would cut down to a single step where the employee would search for a suitable employee online and get connected with him/her directly whose identity is consistent on the blockchain already. The employee can be paid automatically through cryptocurrencies periodically.
The blockchain technology is booming and is a very strong concept, so whichever country accepts or uses these new platforms at the initial stages will have an advantage in future. In this way, the blockchain technology would completely redefine not only the HR but also the financial industry forever.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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