rtificial intelligence (AI), blockchain, and NFTs could change the world of work. Those who work in human resources should begin investigating their impact on the HR team and corporate organization.
To understand this, it is first necessary to contextualize these technologies. It falls within the framework of the so-called Web3.
Web 3 and decentralized technologies
In its infancy, Web3 was classified as the bigger, more connected, and wiser brother of Web 2.0 (as we have it now).
Web3 is a new generation of technology for building and managing the Internet. It focuses on using decentralized technologies to create applications and services that do not rely on a single central organization. This means that Web3 applications are based on a distributed network of nodes. It works together to provide a standard service without relying on a single central server.
One of the key technologies used to build Web 3 is blockchain. It is a distributed digital register. Blockchain allows transactions to be recorded and reliably verified without the need for a central control body. Blockchain is used to build various decentralized applications. Such as cryptocurrencies, smart contracts, and electronic voting systems.
Other technologies used in Web3 construction include peer-to-peer (P2P) communication protocols. It allows devices to communicate directly with each other without the need for a central intermediary and decentralized authentication system. It allows users to control their personal data and protect their privacy.
Web3 is still in a very early stage of development. But some applications and services are already running on its network. Such as decentralized marketplaces (DEX) for cryptocurrency exchanges, blockchain-based games, and decentralized crowdfunding platforms.
In summary, Web3 is based on four main features:
● Cryptocurrency enablement,
● Autonomy and “artificial” advantages.
The impact of Web3 on HR
It is estimated that Web3 will affect most professional sectors and HR as well. This is mainly due to the creation, storage, and sharing of data within it. The transparency and credibility provided are key differentiators and the biggest benefits.
For example, thanks to Web3, blockchain technology, and artificial intelligence (AI). The HR function will be able to revolutionize the way the talent acquisition process is performed. In this context we believe that Web3 technologies can be used in several ways to improve this process:
● Decentralized application systems
It is possible to create “decentralized” systems. It allows users to register and verify their profiles and experiences in a secure and reliable way. Unlike the current centralized system, thus the availability of platforms or organizations, “on-chain” technology allows each candidate to check whether their profile has been treated “correctly”. Let us think about what this could mean for transparency and impartiality in public elections.
Similarly, blockchain can be used to build skills management systems. It allows registration and verification of the technical skills possessed by an individual in a “verifiable and irreversible” manner. Thus, supporting the selection process and staff training. Let’s imagine that we declare that we have a certain level of knowledge of the English language. Today it is a self-declaration that employers must verify. If the test certificate taken is an NFT and thus created with the blockchain, the certainty of rights to this requirement will be immediate.
Finally, blockchain can be used to create valuation systems based on the transparency and immutability of data. It not only provides an objective assessment of employee performance but also provides traceability of the assessment over time. Think about career paths in public administration and attaining the achievable goals of impartiality and transparency.
NFTs and Human Resources
NFTs, or non-fungible tokens, are a form of unique digital token that represents a unique identity of a digital object, such as an image, video, or sound. They are based on blockchain technology. It allows these tokens to be created and transferred reliably and securely.
NFTs have been used for various purposes. Such as certifying ownership of digital artwork, creating personalized digital collections, and creating token-based games. But their use is now widespread in everything from degree certificates to the absolute certainty of wearing fake items of clothing.
The relationship between NFTs and Web3 is close. Both are based on blockchain technology and allow the creation of decentralized applications and services that do not rely on a single central entity.
Web3 allows these NFTs to be created and managed securely and reliably without the need for central intermediaries. It means that users have more control over their digital assets and ownership. In addition, blockchain’s transparency and immutability make it possible to guarantee the authenticity and uniqueness of NFTs. Also, it makes them a very attractive form of digital property for artists, collectors, and investors.
One of the primary responsibilities of HR is recruiting and talent acquisition. Discovering new and established candidates can be rewarding, not wading through mountains of resumes. With Web3, HR can use NFTs’ blockchain-based technology to streamline and speed up the hiring process.
For example, NFTs are already allocated when you graduate. Soon, this digital and “irrefutable” certificate will be assigned to every person even if they have “hard skills”. An NFT is unique and non-exchangeable. This allows HR to instantly verify, for example, the technical qualifications of each candidate.
With an estimated 40% of people lying on their resumes, using NFTs can be an invaluable tool for spotting the “beauties” and bringing confidence back into the hiring process.
Another advantage of digital lasers is their transparency. NFT qualifications will be readily available as public data on the blockchain. Such transparency will save the HR department time. Because it would mean not having to wait for checks like educational qualifications.
Through Web3, HR managers can access pre-screened/screened applications with the required skills. This will allow managers to jump straight into the interview only to check and analyze the soft skills of the candidates.
Social tokens and democracy: a new approach to employee engagement
DAOs are decentralized autonomous organizations. They are community-led and move away from central authority, adopting a bottom-up management approach. One of their key elements is the use of token mix or social tokens for business decision-making. Voting is then performed within a blockchain that makes all votes publicly visible.
As of late, the DAO has grown from 13,000 to 1.7 million participants. Although this structure can grow, exponential growth can come from the use of “social tokens”. It can be spread to all types of businesses through Web3.
Employees, for example, can be given social tokens to vote on issues and ideas within an organization. Giving employees a seat at the table can have a positive impact on a company. Because employee empowerment greatly increases workplace morale and has a positive impact on productivity.
Of course, not every company needs to be a DAO, but social tokens serve as an attractive incentive for HR when looking for new talent. Your audition opportunity may be a new and enticing proposition for someone who previously worked for a traditionally top-down company.
What we’ve seen are a few examples of areas where blockchain can be applied with disruptive results. We are at the beginning of a new era, a universe yet to be discovered before us, where the technology it embraces will truly change the way we live., work, and business. There will be radical changes. We cannot allow ourselves to be unprepared, or rely on improvisation. For this purpose, it is essential to equip ourselves with all the necessary skills and infrastructure to face the juncture of this era and fully benefit from all the unimaginable benefits derived from it.
So, it is true that Web3 is still in its infancy, but many new technologies are rapidly becoming available.