Can Blockchain be applied to human capital management and HR?

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

The technology that was born for the cryptocurrency industry will now help with the management of personnel and to facilitate the payment of payroll. Because Blockchain transparently discloses all information, its implementation could help empower employees.

Payroll, identifying the origin and stages of production, and creating and managing contracts with employees are some of the HR tasks that could be simplified with the use of Blockchain.

The list is as broad as the imagination and needs of each company, says David Castillo, systems engineer in an interview with Human Capital Factor.

But the possibilities of this technology take things further. Castillo speaks of changing the "one-way" relationship of the employer to the employee, including employer and employer towards the employee - with Blockchain, "all are the same."

"The thing to understand is why with this technology it would be different. It is for decentralization and for security: it is incorruptible ", says the young engineer in systems by the Technological Institute and Superior Studies of the West (ITESO).

This is how this technology works

"Japanese Satoshi Nakamoto developed this bitcoin-oriented technology," or virtual currencies. It is like a database contained in one block, which is chained to another, and that other and to another. The information is decentralized, that is, there is not a single person in control of it, but all, say, owners of the chain.

One of the applications is the Etereum platform. Smart contracts can be created at that site. For example, explains pedagogically, a businesswoman wants to build an apartment building. To have enough money for construction begins to sell the future flats, "sell air," says Castillo.

One way to insure those who will invest in the place is to offer them contracts that will be smart. That is, with this mechanism everyone will be aware of every step that the businesswoman, such as the purchase of land or the permission of the authorities to build.

"Let's say you do not get permission from the government to build on that site, there is no way to hide it as it has in other cases, because it does not have control of the information. Being in Blockchain can not alter any data of the blocks, everything appears in the chain ".

Smart contracts for the company and worker

Smart contracts can also be applied in labor matters, he says. "In a test contract, for example, where time and all functions are stipulated. Nobody can manipulate it, there will be all the reports, payments and all traceability.

David Castillo believes that it could also work for the payroll, that is, the digital receipt issued by the Tax Administration Service (SAT) when an employer reports the payment of the template.

Through the Blockchain database you can see everything: the payment of the company and verification of the SAT. "That's why it's important that governments include this technology in their processes, it would save them tax evasion."

The Blockchain Evangelist

Blockchain -translated into Spanish as a block chain- is a technology based on cryptography and block chaining, explains Castillo.

Amng the certifications of the specialist is that of the Capability Maturity Model Integration (CMMI) Institute, in Spanish, Institute of Integration of models of maturity of capacities. The endorsement of that US agency is the most important at the international level in the field of application and software development.

His parents are scientists, so he's always been familiar with technology, "the real one. Not the one that makes believe the marketing. " He is founder and investor of several companies in Silicon Valley, like Inbrightcor.com, Ixolab.com and Cardinal Education.

Four years ago he created Uxlon, a Mexican company with operations in Israel and the United States, to professionalize Blockchain services in Mexico. "First we have to evangelize, change the chip to the customers. Then apply it to what they need. "

The value of truth

Currently the human resources areas of many companies establish a one-way relationship, he says. That is to say, they are those who are understood with the public institutions in procedures in which also the employee should participate.

"The boss says 'this is my employee and this wins'. But at no moment does the government receive a signal from the worker to affirm that, indeed, that is his employer and that amount is what he receives."

For Castillo, society and legislation are based on the assumption that the truth is set by the employer, "if he says he pays so much to his worker, there is no doubt for the government." With the technology of block chaining the employee could be involved to verify that he works in the conditions that the company reports.

Those employers who want to implement these systems is because they understood that value no longer lies in hiding things. Generally they are technified companies that want to offer the value added to its collaborators and clients.

"We are trying to return to true democracy in different areas of our lives. In about 5 or 10 years we will all use this technology and those who do not will simply fall behind."

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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