Blockchain applications in HR
Use case 1. Advanced protection of sensitive data
Centralized databases storing all sensitive data (such as employee records) in one place are an appealing target for hackers. One single effort might be required for theft or corruption.
On a decentralized blockchain ledger, all the nodes in the network have the same copy of all data instances. Such data distribution neutralizes single-point-of-failure risks, making hacks next to impossible.
Use case 2. Improved hiring process
Recruitment remains a time- and money-consuming process; organizations often have to apply to recruitment agencies for the inability to deal with talent hunting single-handedly.
Acting as a universal and incorruptible database for candidates’ data, blockchain makes talent hunting quick, efficient, and less costly. Eventually, one might do without recruitment agencies.
Use case 3. Streamlined cross-border payroll
Grueling settlement procedures, reconciliation from third parties, fraud risks, and exchange rate fluctuations complicate cross-border payrolls and increase distrust and dissatisfaction from overseas personnel.
Blockchain-powered, code-dependent, and encrypted smart contracts can replace outdated payroll systems with automated payment issuing triggered under particular strict and immutable conditions.