Blockchain technology in HR, Have you ever wondered there can be a solution to fake certificates, fake experiences, corruption, and many other things where Trust is at the centre? There is this revolutionary technology called Blockchain which aims to solve the problem of Trust.
So what exactly is Blockchain
A decentralized computation and information-sharing platform that enables multiple authoritative domains, who do not trust each other, to cooperate, coordinate and collaborate in a rational decision-making process.
Blockchain can be used to automate the process of payroll and benefits management. With blockchain, employees can receive their salaries and benefits in real-time, without the need for intermediaries. This will reduce the time and cost associated with payroll and benefits management, making it more efficient and streamlined.
Let’s understand how this works:
- A user initiates a transaction by creating a digital record of it. This transaction can be anything of value, such as money, data, or a digital asset.
- The transaction is broadcast to the network of computers (nodes) that are connected to the blockchain.
- The nodes on the network validate the transaction to ensure that it is legitimate and that the user has sufficient funds to complete it. The validation process uses complex algorithms that require a significant amount of computing power.
- Once the transaction is validated, it is grouped with other validated transactions to form a block.
- The block is given a unique identifier, known as a “hash,” that is created using a cryptographic algorithm. The hash is then added to the blockchain, along with the previous block’s hash.
- The block is distributed to all nodes on the network, who add it to their copy of the blockchain. This creates a decentralized ledger that is maintained by all the nodes on the network.
- Once the block is added to the blockchain, the transaction is considered complete, and the user’s account balance is updated.
- The blockchain is tamper-proof, which means that once a transaction is added to the blockchain, it cannot be altered or deleted. This ensures the integrity of the blockchain and makes it a secure and transparent way to record transactions.
Now try to understand by a very simple example from the finance world to understand how Blockchain solves the problem of Trust.
- I had Rs.100 Physical note, I give it to say Mr.A. Now I have Zero and Mr.A has Rs.100.
- Now suppose same transfer I am doing using Digital code(a.k.a Note). It’s very easy to duplicate the Digital Note by either me and / or Mr.A. I or Mr.A can create multiple copies and we can send the same Digital Note to multiple people.
- This is called the Double-Spending problem.
- To solve this problem we need to track it. We need an accounting book to track it, usually called ledger.
- Now we need to make someone to take charge of the Ledger.Handing the ledger to a single person could again led to Manipulation.
- Solution is to give ledger to everyone. All transactions that have ever happen will be recorded so there is no chance of manipulation or duplication.Because it’s a public ledger, I don’t need third-party to make sure I didn’t cheat, or make extra copies for myself, or send digital notes twice, or thrice.
- People can therefore trade with peace of mind, that it’s not fake or duplicate.
In recent years, blockchain technology has emerged as a game-changer in many industries. Its potential to revolutionize the way we store and transfer data has not gone unnoticed in the recruiting world. Blockchain technology offers a new way to approach recruitment, from resume verification to payroll management. In this article, we will explore how blockchain can be used in the recruiting process and its benefits.
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Resume Verification:
Verifying candidate’s resume is one of the most critical aspects of the recruitment process. The traditional methods of resume verification are time-consuming and inefficient, leaving room for errors. Blockchain technology can be used to store and verify the accuracy of a candidate’s resume. All the information in a candidate’s resume can be stored in a tamper-proof digital ledger, ensuring that it cannot be altered or deleted. For example In case of fake Certificate suppose hash created using a cryptographic algorithm of our education certificate is stored in a decentralized fashion. It will be impossible for anyone to create a Fake Certificate or manipulate it in any ways. Since a slight change will alter the hash value completely and will be easily caught.
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Decentralized Identity Verification:
Blockchain can be used to create decentralized identity verification systems, which will allow candidates to create a digital identity that can be verified by multiple employers. This will eliminate the need for background checks and identity verification services. By using blockchain technology, candidates can maintain control over their personal data, ensuring that it is not misused.
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Smart Contracts:
Smart contracts can be used to automate the recruitment process. For example, a smart contract can be created to automate the process of scheduling interviews, sending job offers, and onboarding new employees. This will reduce the time and cost associated with the recruitment process, making it more efficient and streamlined.
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Employee Records:
Blockchain can be used to store and manage employee records securely. Employees can maintain control over their personal data, ensuring that it is not misused. Employers can access employee records in real-time, making it easier to manage employee data, such as training records, performance reviews, and payroll information.
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Payroll and Benefits Management:
Blockchain can be used to automate the process of payroll and benefits management. With blockchain, employees can receive their salaries and benefits in real-time, without the need for intermediaries. This will reduce the time and cost associated with payroll and benefits management, making it more efficient and streamlined.
A successful implementation of Blockchain would reduce future rework and enable trust factors to settle in the organisation, it is also true that no one can remove human motions and intellect to choose a person for the job through the recruiting process. I hope you would like this article and subscribe to my blog. Get to know more about blockchain here.