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Blockchain as a Viable Solution to Human Resources Management



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How to Secure Bitcoin Exchanges

Artigos em outros idiomas são publicados em International News | Articles in other languages are published in the International News


Blockchain technology has come a long way since its inception. Originally, the ledger used by the father of cryptocurrencies, it has now taken on a life of its own

By Mary Ann Callahan

To begin with, we will give you a rundown of what blockchain technology is and then explore some of the innovations in the field of human resource management as well as current projects.

What is Blockchain Technology?

At its most basic level, blockchain is a virtual ledger that monitors, records and securely stores information. It has been used extensively by virtual currencies like Bitcoin as a means to accurately log transactions and facilitate crypto exchange operations.

When a transaction is made, a block is formed on the ledger. When subsequent transactions are made, more blocks are added to the ledger; and eventually, after repeated transactions are made, a chain forms to display the record of transactions chronologically.

What’s So Special About It?

At this point, you may be wondering why such a simple system is revered as much as it is. Although the premise of blockchain technology is simple to grasp, the functionality and application solutions are more complex. A huge advantage of it has over other information storage systems and ledgers is that it is completely secure.

Once a block has been formed, the information within the block can’t be tampered with, altered or doctored in any way. This means that this technology is not only incredibly precise and accurate, it is also completely secure and free from abuse and manipulation.

Blockchain Beyond Cryptocurrencies

Because of the precision and security features, blockchain has grown into an entity of its own, independent of cryptocurrency usage.

It is now being applied in many industries across a diverse field of sectors. Year on year, more businesses are turning to blockchain technology to manage data.

This data management is not limited to financial instruments though. Blockchain technology has functionality across all data management practices and is used widely for storing client and customer information, processing data and keeping records securely.

This is changing the way businesses operate the data of any kind and is proving extremely beneficial in human resources.

Blockchain and Human Resources (HR) Management

The efficacy of blockchain technology in data management for human resource departments can be broken down into 4 key areas.

The wide-ranging functionality means that HR managers now have a universal tool that encompasses their daily operational requirements.

Immutable Track Records

These technology allows HR teams to track and record information about their staff in a way that can’t be redacted, edited or altered.

This also means that they can securely store information about personnel in a confidential and safe way. Records about performance, work skills, internships and education all fall into this category, allowing HR teams to have a sweeping overview of their workforce and comply with data regulations at the same time.

Sensitive and Private Information

In the day-to-day running of an HR department, there will be many times when sensitive or private information needs to be stored or moved securely.

This can be anything from disputes and grievances to sensitive medical information. Blockchain technology handles this in a secure manner, and because it is unchangeable, there is no risk of documents or records being lost along the way. This is crucial when it comes to confidential meetings or historic medical notes.


In order for an HR department to function appropriately, there are many legal obligations and roles to fulfill. This means that data management during the recruitment phase has historically been precarious with paperwork, not completed in correct time frames, or there have been contracts overlooked.

With blockchain technology, this process can be automated using programmable smart contracts. Once all the pre-set criteria are met, blockchain will issue any relevant documentation and fulfill the smart contract.

Workflows and Daily Operational Demands

Building on the smart contract functionality, workflows can be monitored, tracked and signed on automatically. This gives HR teams more time to focus on other important aspects of their job and make sure that operational management is taken care of by blockchain technology.

Blockchain already has a profound impact on the HR industry and many HR companies are turning to and adopting blockchain projects to oversee their HR data management. There are a few projects that are pioneering the usage of blockchain tech in HR.


Aworker has combined blockchain functionality with the HR recruitment process, matching talent with employers and seamlessly fulfilling the hiring requirements with the implementation of smart contracts.

All employee/employer information is held securely, and individuals are matched with companies when the skillsets fit the job descriptions. It is a simple but effective blockchain implementation and there are likely to be other projects that follow suit.


Another project enjoying a great deal of early success is Chronobank. Aiming to be the Uber of the HR world, they are keen to disrupt the existing model of data management in the HR and hiring industries.

A project that encompasses all aspects of HR and finance, Chronobank is looking to streamline and help HR departments realize their full potential through the use of sophisticated blockchain tech and smart contracts.


Ethlance is an unusual addition to the HR/Blockchain narrative and aims to provide companies with the opportunity to hire workers using digital currency, specifically Ether.

Working in the same way as Upwork or Freelancer.com, it matches freelancers with companies but instead of a transaction being made in a real-world currency it is all done in Ether on the Ethereum blockchain.

It remains to be seen how viable this project will be, but it certainly raises the question whether in the future freelancers will be more inclined to trade in cryptocurrency for their efforts.

The future of blockchain technology is looking great and HR departments are sure to benefit from the amazing projects that are underway and being launched imminently.

How to Secure Bitcoin Exchanges

Curso online descomplica blockchain e aponta principais aplicações da tecnologia aos negócios

Blockchain e privacidade combinam?