Blockchain Unlocks Potential Innovation in HR and Real Estate

Nov 26 2019
Published in: Technology
| Updated Apr 27 2023
Blockchain is the basis for innovative digital solutions in sectors important to mobility such as HR and real estate, with Singapore, London and Berlin creating an environment conducive to blockchain startups.

In the span of just 10 years, the innovative idea of encrypted currency known as blockchain took the world by storm. As the technology continues to evolve, industries such as HR and real estate are beginning to create innovative solutions for to gain efficiency and safeguard data privacy.

In the span of just 10 years, the innovative idea of encrypted currency known as blockchain took the world by storm.

Invented in 2008, Blockchain is the technology that makes possible digital currency such as Bitcoin. The technology allows digital information to be distributed, but not copied, so each piece of data has only one owner. The information is constantly reconciled into a database, which is stored in multiple locations and updated instantly, keeping records public and verifiable. Finally, since there’s no central location, it is harder to hack, since the information exists in multiple locations. Blockchain technology is a promising platform for innovation in various sectors including HR and real estate.

Large multinationals around the world are taking advantage of blockchain’s potential. Apple intends to use blockchain technology to timestamp data, and Toyota is exploring how to use blockchain for self-driving cars. China’s largest bank, The Industrial and Commercial Bank of China, intends to use blockchain technology to verify digital certificates instead of a central authority. The mobility industry will see similar innovations through the real estate and HR sectors.

PwC foresees the use of blockchain in real estate through smart contracts. “With the help of Smart Contracts, it will be possible in the future via Blockchain to design rental and purchase contracts, to provide and evaluate the necessary data for real estate valuation, to commission service providers along the value chain, to map real estate data and to store sensitive data.” This could lead to service providers, contracts, authorities, and administrators becoming connected and managed while decentralized.

HR can also benefit from blockchain. Solutions already exist to facilitate real-time payment to contingent workers, who are often mobile. According to Gartner, other early cases of blockchain success in HR include background and employment history checks, employee data security and access, smart contracts, and encrypted payments and benefits. Additionally, with the growth of blockchain technology comes the need for skilled tech talent who are needed in locations facing tech talent shortages.

As blockchain expands, so does research on the best cities for blockchain companies to operate. Singapore is an attractive location due to its regulatory friendliness and active blockchain community. Additionally, the Monetary Authority of Singapore is known for its efforts to make regulations on cryptocurrency clear. London is popular as well due to support from the U.K. government to create a blockchain ecosystem and a cryptocurrency task force to regulate and encourage growth.

Berlin offers benefits conducive to blockchain innovation, such as low cost of living, easy access to tech talent, a vast ecosystem of startups, and an open attitude toward international talent. As a result, almost 50% of Germany’s blockchain startups are in Berlin. The German Financial Market Supervisory Authority approved the distribution of the country’s first blockchain-based real estate bond this year, signaling major developments in blockchain for real estate.

Blockchain technology continues to grow through startups and multinational corporations, and in exciting cities such as Singapore, London and Berlin. With its applications in human resources and real estate technology, blockchain is set to upend the mobility industry, creating exciting and useful digital solutions not seen before.