By now, you've probably heard of blockchain technology in connection with something like cryptocurrency thanks to Bitcoin. Well, the same underlying structure that makes those digital currency tokens possible is being adapted for all sorts of business-to-business purposes. An HR Blockchain of the near future might help you manage your payroll around the world, certify the identities of candidates for open positions, or protect your organization's proprietary data. Let's take a closer look at how it all works.
Introducing the HR Blockchain
A blockchain is a digital ledger, like you would use in accounting. Each block is a transaction or series of transactions in the log. The "chain" refers to the ongoing collection of blocks over time as they are added to the ledger. This ledger is copied in such a way that it exists on many different "nodes" or servers networked together. So if you change an entry in one place, it needs to be validated across them all. This makes the entire system very tamper-resistant and hard to hack from the outside — you can't easily attack all the nodes at once. A blockchain network is considered a highly secure system.
Certifications and Identity
Identity is a core problem for both employers and employees. Can you trust that someone is who they claim to be on a piece of paper? Do they really have the degree from the university they claim? Did they really pass the drug screening? Blockchain technology is built around the idea of establishing trust. The two parties exchanging data don't need to trust each other — they just need to trust the system and the processes at work.
In the near future, documentation relating to our identities may exist on blockchain networks that an employer could securely access to instantly verify credentials — without phone calls or manual research. Universities could make your records available, and you could toggle access on for a specific employer to verify your degree. The same could be done for medical records or vaccination status before international travel.
International Payroll
Running an international organization is complicated, and one consistent hassle is dealing with local currencies, regulations, and policies in each country where you operate. Leading corporate finance blockchain firm Ripple has established partnerships with banks, credit card companies, and global money transfer specialists to explore this space.
The premise is that blockchain technology should be faster and more secure than traditional banking methods. Instructions can be sent anywhere in the world on a blockchain network and only converted to local currency once they arrive. Rather than taking days or hours, this could potentially happen in seconds.
Outlook
Blockchain technology is poised to be a foundational element of 21st century business life. It may become the underlying architecture that powers the next generation of apps and services, changing the business processes we use every day. The goal is to move toward a more efficient and secure exchange of information between people and organizations around the world.
