German blockchain startup Ascribe and Japan-based human resources tech firm Recruit Technologies have formed a strategic alliance to bring blockchain technology to the human resources industry to increase transparency and fight fraud in HR credentials.
Recruit Tech, a subsidiary of Recruit Holdings Co. – a major information services and human resources company in Japan, will leverage Ascribe’s web service to develop blockchain-backed cryptographic Certificates of Authenticity. To overcome scalability issues with traditional blockchains, Recruit Tech will also be using BigchainDB, a scalable blockchain database developed by the Ascribe team.
The goal of these tests is to examine the possibilities and practical uses of how blockchain technology can be applied to the human resources sector and develop a prototype resume authentication database for job hunters.
Osamu Yonetani, CTO of Recruit Technologies, stated:
“With a resume authentication database, the verification of official certificates and contracts, which have until now been typically done on paper, could be carried out using the blockchain database. As a result, the effort of collecting multiple official certificates would be reduced for those searching for jobs. The companies being applied to could also handle confidential official certificates safely and without worry of misrepresentation.”
The two partners hope the result of these efforts will encourage data-sharing among different institutions and allow for data-mining based fraud detection. Record credentials will be stored on the blockchain and tamper-proof Certificates of Authenticity will be generated via digital signatures. While HR is being used a pilot use case, the intention is for Recruit Tech to leverage this technology across the many different industries Recruit Holdings Co. works with.
HR is one industry where fraud manifests in forged or altered documentation including completely fabricated documents like school credentials or previous employment records. Another common example is foreign documents that are mistranslated, improperly representing the original or completely changing their context.
Bruce Pon, CEO of ascribe, noted:
“This type of fraud is common worldwide. With blockchain technology, an institution can issue a degree to a student in a cryptographically secure, immutable, public fashion. By leveraging this technology, Recruit Technologies will find a way to address a variety of fraud issues, greatly reducing fraud on a large scale and in turn benefiting their customers.”