Blockchain is an online distribution system that stores a huge amount of data. In other words, it’s a chain of blocks that contain information according to the business it’s implemented on. Blockchain was initially described as a structure with intent to timestamp digital documents so that no one can backdate them. But soon as people got the hint of its potential Blockchain was adapted to create the digital cryptocurrency, bitcoin. ‘So what made Blockchain technology so popular among the organizations?’ It can be stated that the data storing structure of blockchain led to its popularity but there are other determinants that contribute collectively towards its fame. Below are some pointers that discuss in detail exactly how and why Blockchain is used so rigorously.
As we’ve discussed earlier, blockchain stores a large number of data, and that data depends on the type of blockchain. This showcases that it’s not confined to a certain type of business or activities and can be flexibly used in any type of organization. Talking about its work system, each block in the chain has a hash that is as unique as a fingerprint, and any change in the block in terms of malicious tampering or change in the stored data will lead to a change in the hash. Along with this, each block has another hash of the previous block. This ensures that the security of the technology because if any tampering is done, it’ll get reflected on the following blocks. To ensure the security of the technology, blockchain has a mechanism called proof-of-work that slows down the creation of new blocks. This helps in reducing the chances of tampering the blocks because if one block is tampered, one has to change the proof-of-work of all the following blocks.
If a company is using Blockchain Technology for storing its potential employees’ data, this secured structure adds up to its benefit. As we all know IT firms are prone to external data breaches more than any other organization. Thus, the proof-of-work mechanism of this technology makes their sensitive data more secure than ever.
As the question already suggested, blockchain technology uses a peer-to-peer network that allows anyone to join. Let’s say an organization has decided to implement blockchain technology for storing all the data regarding the recruitment. The peer-to-peer network allows all the designated members to join. Each member that joins the networks gets a copy of the blockchain node so that they can verify that everything is still in order. This node creates a consensus where every member decides which blocks are valid and should be kept in the network. Therefore any block that has been tampered and is invalid, is rejected by the network. This well-built structure reduces the chances of any further tampering as one has to tamper with all the blocks, redo the proof-of-work and take control over fifty percent of the peer-to-peer network. This is something impossible to do, thus, making the use of Blockchain Technology in Recruitment a smart decision. It’s the security of blockchain technology that led to many companies turning to this for recruitment and other operations as well. Not only for recruitment purposes, but blockchain technology can also be used for storing the data about existing employees and other information like details about the business activities.
These are some of the important features that showcase its importance in the recruitment process and making it a trending proposition altogether. On this note, it can be stated that among all the technologies, the blockchain has game-changing possibilities across other countries. The use of blockchain has gained so much popularity that a Forbes weblog stated that in coming years; blockchain would deeply impact HR’s responsibilities. Its ability to cut to the chase of utilizing data without any middleman could omit HR’s responsibility in the recruitment process. According a recent research by Forbes, it is said the almost 60% of the job seekers misstate themselves on their resumes. This misinterpretation on a seeker’s part gave rise to the rigorous use of blockchain technology, keeping in mind its data lock structure. With its amazing work system, blockchain allows the recruiting teams, snappy and accurate access to a potential employee’s entire employment history. The misrepresentation of data by a job seeker ad many other issues lie that led MIT’s Media Lab to come up with a program that uses the blockchain technology to issue, display, and verify credential details.
On a concluding note, the blockchain technology might be the future for recruitment in the corporate sphere but we should keep in mind that as a new technology it might face difficulty in settling into the already established framework. But the perpetual development in the technology will surely make it up to the mark.