Revolutionizing HR: Blockchain Unleashed for a Bright Future
Leena, Shobhna Sirohi · Apple Academic Press eBooks · 2025
Blockchain is it something that can add worth in terms of security and transparency in Human Resource functions? Does this technology have the potential to create an impact or incorporate a change in the way we work or do business? Many more questions flooded as soon as blockchain technology is linked with Human Resource Management. So, to answer all questions, we first need to understand the concept of Blockchain technology. Blockchain is a digitally encrypted ledger that stores information in groups called blocks. Blocks possess specific storage capacities, and once they reach full capacity, they are sealed and connected to the preceding filled block, creating a sequence of data referred to as the blockchain. Any recent data added after this new block is compiled into a newly created block, which, upon reaching full capacity, becomes part of the chain as well. It is a type of decentralized shared database system whose main purpose is to remove third-party validation, making it a trust protocol. The objective of blockchain is to enable the recording and distribution of digital information without allowing any edits, a concept also referred to as distributed ledger technology. Incorporating this technology into HR functions could be of great help in various domains such 330 as payroll, recruitment, contract management, employee database, and so on. It may help to reduce fraud, reduce chapter work, and facilitate easier identity verification, which could help in smoother payment facilitation to employees, and so on. Along with all benefits, there are many challenges in the adoption of blockchain in HR, but as of now, due to its infancy, it is still not a widespread technology to address the challenges being faced in different aspects of HR, especially in transparency and security of data. Although blockchains are enabled with various existing and emerging technologies like encryption and peer-to-peer networking, there is still a lack of a capable supporting system. This chapter will unfold various functions of HR where blockchain technology can be used, explaining in detail how it could be of use to the organization and what contribution it could provide to the productivity and goals of organizations.