This is article 9 of 10 forming the ninth part of a series of articles dedicated to my attempt at helping Payroll & HR professionals understand the potential impact that both Blockchain and Cryptocurrencies could have on the future of Payroll & HR.
To view the earlier article in the series – click here:
- Article 1: How will Blockchain and Cryptocurrency affect the future of Payroll & HR
- Article 2: Will companies start to payroll its employees in Cryptocurrency?
- Article 3: How will Blockchain affect HR Recruitment Processes?
- Article 4: What are smart contracts and how will they affect payroll and HR?
- Article 5: What benefits could Blockchain bring to the payroll industry
- Article 6: Are Blockchain Payroll Companies the Payroll Future?
- Article 7: How to build a Blockchain payroll system
- Article 8: When should businesses start planning for blockchain?
Also, check out The Payroll Podcast with Anita Lettink, SVP of Global Alliances at NGA HR which discusses ‘Blockchain and the Future of Payroll & HR’ in considerable detail if you wish to fast-track your learning. You can subscribe to the Payroll Podcast here: Apple Podcasts
Blockchain for Payroll & HR: The Risks & Costs
Transferring payroll to the blockchain will require you to integrate (relatively) untested software into your own internal systems.
Immutability is both a benefit and a negative. And where decentralised systems interact with the real world is where they are weakest.
Speaking about a 20th June hack of South Korean cryptocurrency exchange Bithumb, worth upwards of $35 million, Mati Greenspan, a senior market analyst at social trading and brokerage platform eToro, said:
“The immutability of a decentralised currency system plays into the hands of fraudsters.
He went on to comment:
“Once a transaction happens, it can never be undone, which is one of the reasons cryptocurrencies can be a target for hackers. However, immutability is also one of Bitcoin’s most attractive qualities. The fact that it operates transparently and independently is a clear advantage for many.”
As discussed above, blockchain or DLT in the business of Software as a Service (SaaS) is still relatively new.
All the hype around blockchain-based systems as ‘The Next Big Thing‘ does tend to cloud the in-built negatives that blockchain technology brings to the table, as well as the technology’s level of immaturity.
In the payroll and HR business, those constraints are around slow payments and insecure databases which can be edited, hacked or stolen.
But is the application of blockchain really the solution we are looking for?
What do you think?
- The last article in the series will be my conclusion!
“So, Is blockchain and crypto the future…?
As always, whether you love payroll or HR, love what you do, work smart and work hard – just be careful not to overdo it 🙂
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Nick Day | Managing Director
JGA Recruitment | JGA Payroll & HR Recruitment
Email: [email protected] | Tel: 01727 800 377