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Role of Blockchain in the HR World

6 min read

Blockchain Is The Technology Behind Bitcoin And Other Cryptocurrencies.

It is a continually updated list of all the transactions or typically known as a shared digital ledger. It enables a record of transactions to be stored and verified across a network and validated in real-time. These records of transactions are duplicated numerous times across many computers. In blockchain, there is a limited scope for fraud as each transaction is recorded by the network and an unalterable and permanent historical record of transactions are maintained.

As blockchain provides decentralized, tamper-resistant, and a secure atmosphere to store data, it has various applications in HR management. In this blog, I will explain the impact that blockchain technology in the HR universe and emphasize on its applications in this field.

Role Of Blockchain In HR

Identification of Potential Candidates

Naturally, human recruiters are limited in resources and time in having to integrate endless strings of search terms and keywords to find people on job boards or professional networking sites which often contain outdated or inaccurate details. However, artificial intelligence would be able to comb through an accurate and live database of potential candidates enabled by blockchain and determine those best suited for the role. In addition to this, the human recruiters will have the ability to discover the right people irrespective of nationality, gender, or age.

The required compliance from different components of the proposed network(individuals, unions, businesses, educational establishments, and so on) would be substantial to achieve this. However, the attractiveness of blockchain is the technology underlying it. While blockchain will not take the place of recruiters anytime soon, the capability to efficiently automate the procedure for determining pre-qualified candidates would hugely enhance their capability and decrease hiring time.

Verification of Employee Information

Blockchain will enable companies requiring specialized capabilities and talent to gather better information about potential partners and contractors than many traditional procurement and recruitment methods provide. With the consent of a prospective employee, an employer can have access to a cache of information that is known to be accurate as it has been managed, stored, as well as uploaded on a highly distributable, secure database.

Take for instance, the job prospects can’t lie about their degrees or training as their data along with their electronic signature could be published on the blockchain and then the HR can access it. Manipulating this data is not possible as it involves taking over the complete blockchain which is an impossible task. In a virtual black box, a person can control his/her own personal data(educational records, financials, citizenship, birth date etc.).

The protocols that help to manage as well as facilitate the transfer of digital currency assets are known as smart contracts and are stored in blockchain. Smart Contracts can streamline a large portion of the onboarding process, especially for high turnover, high volume positions. The blockchain smart contracts could also have an impact on retirement packages, benefits, and wages of employees after they are hired.

HR and procurement staff must gain knowledge on querying blockchain with a specific yes or no questions. Take for instance, can you code in this particular language? Do you have this type of license? The responses to these questions from all the black boxes will give a list of people who meet these qualifications. The employers can pose questions to the job seekers and the later can program their black boxes with answers or they can refuse to answer.

Validation of Resumes

At present, the job boards are paid for access to resumes that are housed in their databases. But, the job seekers whose resumes are housed won’t have much control over what is done with the resumes or who views their information. The databases are filled with fake resumes on the recruiter side. So, the organizations are building a decentralized database of resumes which is owned and managed by candidates and is authenticated by blockchain. For example, consider an employer who pays candidates for the right to contact them or download their resumes, rather than paying LinkedIn or a job board.


The above-mentioned applications of blockchain in HR can be seen as improvements rather than innovations. And, it is true that the uses of blockchain in HR being imagined currently are a continuation of the trends towards automation, AI, and big data. Blockchain is envisioned to transform the world with its capabilities and will certainly have an unavoidable impact on the way HR activities are carried out, regardless of its rate of progress.

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    Meet the author

    Keka Editorial Team

    A bunch of inspired, creative and ambitious youngsters- that’s Keka’s editorial team for you. We have a thirst to learn new subjects and curate diverse pieces for our readers. Our deep understanding and knowledge of Human Resources has enabled us to answer almost every question pertaining to this department. If not seen finding ways to simplify the HR world, they can be found striking conversations with anyone and everyone , petting dogs, obsessing over gadgets, or baking cakes.


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