The blockchain is an interesting technology.  To define blockchain in a simple manner would be to call it an digital ledger in which transactions made in Bitcoin or another cryptocurrency are recorded chronologically and publicly. Bitcoin is a cryptocurrency and a digital payment system.  Blockchain can also be used to maintain a digital ledger of information. In blockchain, each transaction and its details are validated and then recorded across a network of computers. Anyone who is a part of the network has a copy of this information. All the members of a particular network first agree on the authenticity of the information and only then the block is replicated, shared, synchronized and added to the ledger. It is a kind of decentralized record storage where instead of a central storage; the validated information is stored in different nodes in the network, where it is open for anyone who is a part of the network, to see the transactions.

The blockchain is virtually impossible to tamper with since each block of information reference the blockchain before it. In the future, Blockchain can be a very useful tool for HR with tons of benefits of leveraging this technology. Let us take a look at some of the ways in which Blockchain can solve some pertinent problems for HR in Jobseeker experience validation:

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Cost reduction

By using blockchain, a jobseeker’s information has to be entered into the system only once. After it has been verified and synchronized in the blockchain, other recruiters will be able to easily verify the credentials. The authenticity of the information is already spoken for when it has been synchronized and added to the blockchain. This drastically reduces the cost and time spent in verifying the credentials of job seekers. Information about job seekers can be shared with other recruiters as and when required. The verification process needs to be done only once.

Easy to combat fraud

Before the information is put in the blockchain, it is checked for authenticity. The information must be consistent in the chain. Only after proper validation is the information added to the chain and synchronized and added to the ledger. Such a system is useful for preventing fraud oh HR related issues.

There have been a number of cases where information dished out by a job seeker about his/her college degrees or work experiences turned out to be bogus.  Once this bogus information gets caught while validation, it is easy to stop such kind of frauds. Information can be very easily shared among companies to reduce the number of frauds.

Follow a candidate from one job to another

By using blockchain, it is easier to follow an employee from one job to another. After each job change, a candidate’s bio-data can be updated in the blockchain, which can be shared across the network among the companies. So instead of verifying historical data every time a new candidate joins a company, the process needs to be done by just one company once and keep updating it for other companies to reference it. By using blockchain, it is possible to even follow a candidate involved in independent consulting or freelance jobs. This has the potential to change how employee contracts are made.