Blockchain Technology in “3D”: Data, Skills, Cybersecurity

Three dimensions to analyze the opportunities of blockchain technology-based applications

Human skills and resources in the age of managing costs and privacy

For businesses today, the top priority is safeguarding data, processes, and human resources. 

In all cases, it’s about protecting the advancements achieved through digitization, both in work processes and the skills of human resources, to ensure there are no uncontrollable risks of real or intangible damage in the face of data losses or errors.

There’s also a need to reduce the time and costs associated with verification processes, partly because the speed of information circulation is crucial to gain a competitive edge and also to shorten the return on investment.

The applications of blockchain technology and its links to data protection are gaining traction, particularly in the realm of human resource management, starting with certification systems. However, tools such as digital badges, designed to “store” educational paths and related skills acquired throughout one’s life, are also evolving. These badges can serve as a kind of “electronic work dossier,” much like identification cards or health cards that many of us now use in different contexts.

On this front, various organizations and public authorities, among whose functions include the issuance of certifications and qualifications, may heavily invest in implementing competence certification systems associated with mandatory educational titles required for certain job roles.

Such systems are already highly appreciated in companies with more complex organizational structures, where the need to reduce the costs of numerous personnel management or recruitment processes is more significant.

If someone could record their certification in the blockchain once obtained, their competence could be “verified” and immediately accessible to any recruiter and potential employer. The trend driven by HR applications of blockchain technology is defining a kind of revolution in corporate onboarding.

Among the primary opportunities offered by blockchain in the HR field, solutions related to the ability to verify the accuracy of past work experiences and validate a person’s curriculum for a particular role are undoubtedly appreciated. It also allows for securely tracking personal data of company resources and the knowledge and skills acquired during training programs. According to CompTIA’s research, 51% of early blockchain adopters in HR use it for this purpose (Network Digital 360).

We are well aware that one of the main challenges companies face today is the ability to acquire qualified, specialized human resources capable of managing the ongoing technological transformation. The development of human resource management systems based on data control and validation mechanisms is essential to improve recruiting effectiveness while significantly reducing costs.

Lastly, thanks to the attention imposed by regulations on personal data protection, we have perhaps gained a better awareness of the importance of data management, and we have finally understood how crucial the careful and correct implementation of a corporate data protection policy is.

As required by the regulations, the principle of accountability, meaning the responsibility of the data controller and the recommendation to adopt measures suitable for protecting such data, often implies investment choices that focus on the digitization of data protection and processing processes.

Blockchain has established a close connection with the GDPR regulatory framework, especially concerning data protection.

A wide-ranging debate on the current compatibility of Blockchain and Distributed Ledger technologies with GDPR regulations has been ongoing for some time, as evidenced by the report published by EPRS (European Parliamentary Research Service) – Osservatori.net Politecnico Milano.

The primary issues to address seem to mainly revolve around the types of data being processed, the identification of roles outlined in the GDP, and the right to be forgotten. The current challenge is to increasingly balance this system of checks and balances: the ability to ensure that, on the one hand, the freedom to have, use, collect, distribute, truthful and authentic information is maintained (or at least not threatened) and, on the other hand, that the trust in the exchange of such information is strengthened (or not compromised).