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Blockchain Technology in HR

By October 23, 2018 No Comments

Blockchain technology is one of the biggest technological advancements in recent years. Although it is primarily associated with cryptocurrencies (Bitcoin, Litecoin, etc.), Blockchain technology is being used to disrupt the traditional data model that drives today’s applications, websites and industries around the world by decentralizing the data.

It is important to understand what blockchain is at its core. Blockchain is a way of storing and validating data. It does so in a way that the data custodian is no longer the business from which you are requesting information. The data is part of a general ledger that belongs to a decentralized network of computer systems. That computer system is highly secure and protected from exploitation, as no single entity can compromise the data integrity of the rest of the data network. For data to become valid, a majority vote must be reached by the network that the information presented is legitimate. Each computer system (miner) has an equal vote. Only then will the data segment (block) be adopted and merged with the rest of the data (chain).

mba blockchain hr

Human Resources is an industry that uses a great deal of data. This data ranges from something as common as a first name to data as private as payroll funds transfers. All this data is contained in multiple data repositories that belong to multiple companies. To aggregate and properly use this data, human resources professionals have to spend a great deal of money in time and resources. Blockchain solves this problem as it eliminates the multitude of 3rd party integrations required for normal business operation. These are some of the functional areas of HR that will be impacted with blockchain adoption:


  • Reliable data can be made available to hiring managers for the purposes of finding the right talent and validating their information.
  • Personnel data is validated as being correct before ever being added to the chain and made available to the hiring managers.


  • Reduced need for personnel to prepare and validate data. By looking back to the chain for the relevant deductions, taxes, time date, and other payroll information, the payroll can be calculated and validated systematically.
  • Employing cryptocurrencies can enable real time payments to employees without the need for banks.
  • Simplified complexity for international payments.

Data Security

  • The decentralized nature of blockchain safeguards user data and ensures that invalid information cannot be added to the chain.
  • The user can be given complete control of their data and with what entities it is shared.

These functional areas are currently all controlled by individual entities. Blockchain has the potential to dismantle the data boundary limits and fundamentally change how each piece operates. It is still unknown as to what the boundaries of blockchain adoption will be and what ripples will be created because of its use. What is known is that it will forever change how we store, transmit and access data.

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