Blockchain: A Fix For The Faulty Data Layer Underpinning The Global Labor Market

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Let’s face it: the labor market is completely overwhelmed. It’s been like that for a while. Change is finally coming on the basis of three major forces all converging. These forces – the unstable and disrupted job market, growing privacy concerns, and the emergence of blockchain technology – are creating a needed change in the way individuals navigate their careers and livelihoods, and in the how employers and other labor market stakeholders make workforce decisions. . The possible end result is a unique revolution for the labor market.

A volatile and disrupted labor market

Technological and social changes are driving megatrends for the future of work. With the global skills gap, talent shortage, labor market polarization, increased inequality and growing wave of non-standard jobs, the labor market continues to be one of humanity’s greatest challenges. for the next few decades.

The right to work — the free choice of employment — is a basic human right. The modern labor market is fragmented, highly specialized, filled with all sorts of alternative work arrangements or on-demand jobs. It becomes an extremely confusing environment to navigate as the growing sense of job insecurity cuts to the heart of identity and social stability. Now more than ever, we need to accelerate our ability to develop and deploy human capital globally.

Growing privacy concerns

With the advent of the commercial Internet in the 1990s, data collection efforts began to increase exponentially to generate mountains of information. The personal data that users give away for free is transformed into a valuable asset. For a long time, brands were able to do this relentlessly and consumers did not voice their concerns. However, that is starting to change. According to the Pew Research Center, 79% of Americans now say they are worried and confused and feel a lack of control over how companies use their personal information. These growing concerns and the cascade of privacy-related scandals that have come to light in recent years are pushing legislatures to pass much tougher privacy legislation and enforcement.


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The emergence of distributed ledger technologies (blockchain)

Blockchain is no longer just about Bitcoin or cryptocurrencies in general. Instead, it can be seen as a disruptive and game-changing technology that will have major impacts on multiple aspects of our lives. A blockchain is a distributed database or ledger shared between nodes in a computer network that are operated by a community of independent, unrelated entities, usually incentivized to contribute computing resources to the network. The innovation of the blockchain is that it guarantees the fidelity and security of the data records it stores and generates trust without the need for a centralized controlling entity.

The revolutionary power of such technology is comparable to the revolution unleashed by the Internet. Just as the internet is a medium for sharing information, blockchain technologies can be seen as a medium for introducing the next level: sharing trust.

Fixing the Broken Data Layer Underlying the Global Labor Market

The emerging contours of the new world of work are rapidly becoming a lived reality for millions of workers around the world. The opportunities for economic prosperity, societal progress and individual fulfillment inherent in this new world of work are enormous. Yet they crucially depend on the ability of all relevant stakeholders to initiate reforms in education and training systems, labor market policies, business approaches to skills development, employment arrangements and existing social contracts.

Hiring people based on what they say about their own skills, identity and credentials is woefully inefficient. Self-reported career records are unreliable and not standardized. Misrepresentations are common. Verifying candidate and employee data requires weeks-long manual processes that add unimaginable friction and cost to the job market. In fact, today’s labor market data exchange infrastructure has more in common with the outdated postal service than with this generation’s digital world.

It’s clear that we need a new data-sharing architecture to replace the outdated and fragmented way in which talent represents their professional reputation in the job market via CVs and other self-reported online profiles.

Blockchain technology has the power to overcome these challenges by allowing individuals to own their career and personal information, rather than relying on LinkedIn and other third-party job boards that ultimately control job data. an individual.

Blockchain has the potential to dramatically change how people navigate their careers and livelihoods and how employers make talent decisions. Ultimately, this technology – although still in its infancy – may well transform the labor market.

Dror Gurevich is the Founder and CEO of Velocity Career Labs™ and Velocity Network Foundation®.


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