When I wrote a year or so ago about how the staffing industry might be affected by Bitcoin, I was pretty far off.

when your biggest impediments to giving someone a job is the time it takes for both you and the candidate to create trust, you know you are in an industry ripe for disruption

My focus then was the fiscal irresponsibility of the United States and how many of us in cash oriented industries like staffing will find ourselves stripped of assets one day when, out of the blue, the government raids our bank accounts to pay its debts.

Losing all your money is a legitimate concern to be sure, but there are less apocalyptic reasons to get familiar with Bitcoin, and one of those is the distributed trust model that supports it.

Distributed trust is a way of running a network in which no one is trusted and no one needs to be trusted.  There is no central trust-providing party that keeps out bad actors.  No keys, no firewalls, no IT security teams.   Bad guys can use the network freely, you just don't care because you don't need to trust them.

In Selena vs the HR guy, we see two recruiting styles as different as centralized vs distributed trust


The most well known implementations of distributed trust such as Bitcoin use a transaction driven database known as the blockchain.

That model is creating new business platforms.   Take the video below for example which explains a new data storage model based on distributed trust and leverages the very obvious yet entirely unexploited resources of devices connected to the internet around the world.

But distributed trust is impacting business far beyond IT, and it will serve up disruptive recruiting platforms as well.  Let's face it, our existing central authority based hiring processes suck.  It takes too long to create trust.  It's a pain for hiring managers and doubly so for candidates.

Currently, recruiting systems are closed, proprietary and small.   They depend on a central authority to create trust.  They require firewalls, strong authentication and thorough vetting of bad actors.

These challenges are as true for corporate systems that run my company's software as they are for proprietary social networks like Facebook and LinkedIn.

If you're in recruiting you see the problems with the current trust model every day.  Fake Facebook profiles.  Social network spam.  Crazy high cost and delays in vetting candidates and doing background checks.

When there are problems like that, when one of your biggest impediments to placing someone is the time it takes for both you and the candidate to create trust, well you know you are in an industry ripe for disruption.

Beat everyone else to it, and you'll have first move advantage.

I'm not going to take a stab here about how blockchain transactions could contain usable candidate profile data.  My guess is that if we leave it to the HRXML people though, we'll still be waiting for it in 2025.

Beat everyone else to it, and you'll have first move advantage.

Tags: Business, Technology