Running head: DISCUSSION POST 1

Discussion Post

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Institutional Affiliation
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Discussion Post

Introduction

The introduction of blockchain technology in business practice has caused significant

changes in how business activities are carried out. Blockchain has rapidly changed how

information is stored and recorded, creating trust and leading to effective information

distribution. In the organizational setting, blockchain has reduced operating costs by removing

centralized authorities governing business practices and removing the need for intermediaries.

The increased security with blockchain has also improved how business transactions are carried

out. With the increased decentralization of transactions, businesses are now able to reach out to

clients more effectively and receive payments digitally in a secure way. In the human resource

management sector, blockchain technology has also become an indispensable asset. The security

of blockchain has enabled better saving of sensitive employee data and handling of sensitive

transactions such as employee payments. Processes such as recruitment have also been improved

due to the use of blockchain due to more accessible and more secure sharing of employee

records. Smart contracts in blockchain have enhanced the storage of employee information,

which has enhanced transparency within the organization, leading to better outcomes.

B.C. and Business Practices

Blockchain technology has the potential to change business paradigms in all significant

aspects. This technology will radicalize business sectors such as I.T., finance, government,

medicine, and other sectors. Blockchain technology is disruptive and innovative, and its core

benefit is decentralization. The current paradigm relies heavily on third-party intermediaries such

as PayPal, MasterCard, or Visa. In this aspect, two parties cannot act directly with each other
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because there are no central systems such as banks and other intermediaries (Welfare, 2019). In

the current paradigm, intermediaries are necessary, and this is because of the responsibility of

transferring money from one entity to another. However, blockchain will rapidly change this, and

this is because it will directly match two different parties, leading to new paradigms. Blockchain

technology is an electronic peer-to-peer transaction system based on cryptographic evidence, and

two parties can directly transact with each other (Baker, Nikbakht & Stein, 2021). Due to the

implementation of this decentralized system, various benefits will be realized with the use of

blockchain technology in commercial activities.

One significant benefit of blockchain technology to business practices is cost efficiency.

It is essential to understand that intermediaries have a massive impact on the market because of

the fees they charge for transactions. This also means they have unlimited access to transaction

data between the different market players. Unfortunately, this leads to inefficiency, reduced

innovation, and risks related to privacy and the censorship of information (Bussgang, Berk &

Schwalb,2019). Blockchain technology in the business setting facilitates cost-free verification,

and this is because it allows peer-to-peer transactions without needing third parties, and this

significantly lowers the costs of the transaction. Since blockchain includes a distributed ledger,

this means that there is a cost-effective centralized solution to various problems affecting the

business (Kizildag et al., 2019). Business activities will benefit from blockchain because of time

efficiency, which is realized through this technology. Blockchain automates transactions and

makes the process of analyzing much faster. Blockchain technology can work continuously for

the entire week instead of traditional banking, leading to positive transaction processing

outcomes.
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Business processes will also benefit from improved security with the use of blockchain,

and this is because each transaction can be automatically validated and secured in a

cryptographic aspect (Bussgang, Berk & Schwalb, 2019). The information is also decentralized

and can be accessed only by authorized users, making it more difficult for hackers to access

critical organizational information. The use of blockchain enhances privacy in the verification of

transactions while also preventing the leakage of information. Therefore, it allows different

stakeholders to verify transactions and enforce contracts without unintentionally submitting any

information to a third party (Morkunas, Paschen & Boon,2019). The immutable aspect of

blockchain is also beneficial to the business setting, which means that there is enormous

difficulty in altering any information stored within the blockchain. Business efficiency is

therefore improved because it is impossible to tamper with any organizational information,

enhancing the information's safety and validity.

Will BC Change H.R. Practices?

Blockchain technology has effectively revolutionized human resource practices in

organizations. The decentralized network of this technology has ensured the automation of the

flow of information, completely disrupting how human resource functions are carried out.

Utilization of the capacities of blockchain in human resources will lead to the creation of more

accurate approaches to different human resource functions (Wang et al., 2017). Employee

records verification is therefore made easier with the use of blockchain technology. Blockchain

effectively records the employee movement as the individual changes different organizations

throughout the career. The organization can dedicate servers and participate in building the

blockchain network. It will ensure better storage and processing of information for record-

keeping and the execution of smart contracts (Gale, 2018). Blockchain will ensure security and
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provide the required processing power, leading to better outcomes. Intelligent contracts will offer

checks and balances, ensuring that the organization does not make errors in entries. Another

example of how blockchain technology can change H.R. practices can be seen through the

automation of employee taxes.

Currently, the taxing of contract workers is complicated, complicating the situation for

workers and employers. Blockchain can track employee income and purchases and give an

accurate time understanding of earnings and taxing aspects. Blockchain will be implemented for

collecting, validating, and verifying information (Baker, Nikbakht & Stein, 2021). The

technology can disrupt and reorganize accounting processes based on the automation of payment

processes and transfer of records. This means that employees and the organization will have a

copy of real-time data, confirming the information more quicker (Bussgang, Berk & Schwalb,

2019). Different government institutions are involved in employee payroll taxes, and each holds

its records. Blockchain technologies would be able to free employers from acting as

intermediaries in issues related to tax calculation and transfer. The smart contract would ensure

that the employer can insert the gross amount into the blockchain system and match the tax data

by calculating all related amounts. The payroll tax determination process would become faster

and also more cost-efficient.

Blockchain technology will also change how the different H.R. processes are carried out

by streamlining various basic operations. Its implementation will be seen in different sectors,

such as issuing paychecks to the management of contracts. Blockchain technology will be

directly integrated into H.R. management to help improve the practices, impacting operations

(Kizildag et al., 2019). Blockchain technology can strengthen security for sensitive personal and

financial data within the human resources department. Since the human resource teams are
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entrusted with high volumes of transactional data and sensitive employee information,

blockchain technology will be relevant. The H.R. department faces enormous risks of being

exploited. Therefore, organizations need to place safeguards to help prevent the occurrences of

fraud and also maintain security (Welfare, 2019). The technology is effective for risk

management and software security, hence its relevance to human resources activities. Blockchain

implementation can help prevent internal and external attacks targeting employee records and

other critical information.

With the increased usage of the Internet of Things in human resources, huge risks may

occur. Blockchain is a relevant solution mainly because it can decentralize data as a critical

defensive mechanism. Blockchain technology can spread data across an extensive network of

storage spaces, which can help mitigate any possible risks of data loss or alteration in the human

resource department (Morkunas, Paschen & Boon, 2019). However, different issues may impede

the adoption of blockchain technology in H.R. One major factor of consideration is legal issues

due to the decentralized nature of blockchain. There is a high possibility that hackers may gain

access to the system, leading to higher security risks. Another major impediment to the use of

blockchain is legal and regulatory issues. It is essential to consider how blockchain can be

regulated in different nations and who would be responsible in case of disputes or conflict

resolution. It is also critical to question whether intelligent contracts have the same legal

obligations as traditional contracts and which issues need to be considered regarding data storage

(Wang et al., 2017). Regulatory issues with the use of blockchain also persist and especially

since some countries still consider the use of blockchain to be illegal. Ethical concerns also occur

with the use of blockchain and especially when there are questions concerning the source of

funds or the nature of the job which has been done.

Different functions of human resource management can be directly impacted by

blockchain technology. Blockchain technology can be implemented in the H.R. function of

employee recruitment. It has revolutionized how the H.R. department views and considers

potential candidates (Gale, 2018). Blockchain provides a high level of security for its uses, and it

can therefore be relied upon for maintaining the integrity of data of the employees such as the

employment background and academic credentials. This means that the H.R. department can rely

on the shared data, and candidates can also share their personal information without fear of

tampering or data loss (Wang et al., 2017). Blockchain offers both the candidate and the recruiter

secured access to authenticated records, which ensures that applications can be viewed in real-

time, with access based on the candidate's consent. The validated credentials can include

important information such as academic history, employment records, driving records, criminal

background checks, and all professional certifications. This can streamline the hiring process,

leading to better outcomes for the organization. Blockchain technology helps eliminate different

third-party and back-office elements of recruitment, improving outcomes for the recruiters.

Another important H.R. function that blockchain technology directly impacts is contract

management. It provides the employees with viable solutions to manage the employee contract

lifecycle. Blockchain involves the use of smart contracts, and these will ensure a transformation

from paper contracts to immutable smart contracts (Morkunas, Paschen & Boon, 2019). The

employees can use these to enforce the terms and penalties outlined in the agreement between

the employee and contractor. Each contract signatory will use encrypted keywords with personal

names, enhancing confidentiality. All of the contractual information is then stored within the

cloud. The intelligent contract satisfies all requirements of the general written contracts while
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minimizing any contractual process complications (Bussgang, Berk & Schwalb, 2019). The

smart contract can enhance the confidentiality, accessibility, verifiability, and anonymity of all

the signatories. Examples of such organizations offering smart contracts include Mindtree and

Konfidio. Another essential human resource function that can be improved with the use of

blockchain technology is the tracking of employee attendance.

The blockchain-based employee attendance management system can securely enhance

the understanding of employee attendance based on the given data concerning employees. The

technology can help improve tracking employee time and attendance data within the

organization. In the attendance system, blockchain can store the employee records in blocks and

validate this data. The records will be treated as a block, which can be validated anytime by the

record owners. The contactless attendance system will help secure employee attendance data

(Schatsky, Arora & Dongre, 2018). The blockchain system is decentralized and distributed, so it

can be effectively applied in developing a tamper-proof system. The employees will not be

required to carry identification such as I.D. cards, and this is because the individual's information

is already stored in the blockchain system. The human resource department can use this

technique to properly store employee data to track attendance (Baker, Nikbakht & Stein,2021).

The H.R. team will have visibility of real-time data, and this would enhance accuracy and

strengthen trust through the authorization of information. Blockchain technology can also assist

the human resources department in managing employee payrolls. This is through easier

verification of the employee's identity and also facilitation of cross-border payment to vendors.

Blockchain technology can replace various manual tasks related to current systems of employee

payrolls.
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Using the smart contract will ensure the organization can allow automation or payments,

enhancing security. It can communicate with banking institutions to ensure employees are paid at

the right time. The smart contract can write out a code of set parameters, and these contracts will

ensure that the payment process is dependent on these set codes (Hughes et al., 2019). When

particular work hours have been completed, the smart contract can pay the employee, contractor,

or vendor through the deployment of a remotely executable code. The code is linked to set

instructions from the organization’s bank account to that of the employee, facilitating payment.

Payroll systems are heavily regulated, and the implementation of blockchain helps reduce errors

and save time (Gale, 2018). The blockchain will remove any banks and intermediaries from the

process while still ensuring the authenticity of transactions and enhancing the validation of

information. Blockchain can provide alternative payment methods for employees by disbursing

funds to those on peer-to-peer networks. Blockchain is encrypted and distributed; this technology

ensures that transactions are more secure, reducing any possible occurrence of fraud.

Conclusion

The impact that blockchain has on the commercial sector is immense, leading to rapid

disruption of organizational activities. Blockchain solutions have tremendously simplified

business transactions while improving transparency and traceability. Through enhancing

security, blockchain has helped prevent fraudulent practices such as hacking. The use of

cryptography has been able to offer an added security layer for all the data which is stored on the

network. Additionally, the privacy of financial transactions has also been enhanced with

blockchain, which has improved the confidentiality of information. The human resource

department continues to rely heavily on the use of blockchain technology as well. The

implementation of smart contracts by blockchain has ensured automated workflow management

also been improved with blockchain. Blockchain technology has changed business operations

and enhanced the adequate storage and distribution of information while enhancing financial

transactions at the organizational level. With trust, decentralization, and immutability,

blockchain has changed how business functions are carried out, leading to positive outcomes for

organizations.

References

Baker, H. K., Nikbakht, E., & Stein, S. S. (Eds.). (2021). The emerald handbook of blockchain

for business. Emerald Publishing Limited.

Bussgang, J. J., Berk, E. B., & Schwalb, N. (2019, January 15). AirFox (A): Embracing the

Blockchain and an ICO. Harvard Business School.

https://hbsp.harvard.edu/product/818097-PDF-ENG

Gale, S. F. (2018, July/August). Blockchain: The future of H.R.? Workforce, 97(4), 10.

https://workforce.com/news/blockchain-future-hr
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Hughes, A., Park, A. Kietzmann, J., & Archer-Brown, C. (2019). Beyond Bitcoin: What

Blockchain and distributed ledger technologies mean for firms. Business Horizons, 62,

273-281

Kizildag, M., Dogru, T., Zhang, T. C., Mody, M. A., Altin, M., Ozturk, A. B., & Ozdemir, O.

(2019). Blockchain: A paradigm shift in business practices. International Journal of

Contemporary Hospitality Management.

https://www.emerald.com/insight/content/doi/10.1108/IJCHM-12-2018-0958/full/html

Morkunas, V. J., Paschen, J., & Boon, E. (2019). How Blockchain technologies impact your

business model. Business Horizons, 62, 295-306.

https://doi.org/10.1016/j.bushor.2019.01.009

Schatsky, D., Arora, A., & Dongre, A. (2018). Blockchain and the five vectors of

progress. Deloitte Insights, 1-9. Retrieved September 5, 2019,

from https://www2.deloitte.com/us/en/insights/focus/signals-for-strategists/value-of-

blockchain-applications-interoperability.html

Wang, X., Hui Zhang, L. F., Lyu, C., & Yue You, L.W. (2017). Human resource information

management model based on Blockchain technology. IEEE Symposium on Service-

Oriented System Engineering, pp. 168–173. DOI: 10.1109/SOSE.2017.34

Welfare, A. (2019). Commercializing blockchain: Strategic applications in the real world. John

Wiley & Sons, Incorporated.