This past year the word ‘blockchain’ has regularly popped up on my radar, so I decided to really research deeper, and I can honestly say that I believe this technology has immense potential for both businesses and end-users. After 14 years of recruiting for the finance and IT sector, it is the newly emerging blockchain technology that has really encapsulated me the most, and it feels natural and right to branch out into this direction. Therefore, with Code Resourcing I have done just that. It is incredibly satisfying to do something I love, combining my passion for recruitment with an exciting industry that is blockchain.
I have been asked by people who want to know more about blockchain, and what it really is, as my network have noticed my new-found passion! Now, I’m no expert on the technological aspects of it, and I’m certainly not a developer. What I do have is experience recruiting people within the Fintech and digital transformation space, and I speak to the people that are looking to use the blockchain technology.
Therefore, I have decided to write a short article in which I will attempt to clarify what blockchain is, and how it could potentially interest you!
What is blockchain?
First thing’s first, you don’t actually need to understand how blockchain technology works in order to use it, much like you don’t need to know how the internet or your smartphone works. However, it’s important to have at least a basic idea of this technology in order to understand why so many find it ground-breaking. This article would be endless, if I were to really go into the details, so I’ll try to limit myself to the essentials.
Blockchain started as the invention of Satoshi Nakamoto, a pseudonym for a person or group of people (the true identity is still a mystery!). The whitepaper for Blockchain was published 9 years ago (October 31st 2008) by ‘Satoshi Nakomoto’. One of the main problems the blockchain initially addressed, was removing the need for a trusted authority or central server when transferring digital currency. In fact, Bitcoin, the crypto asset most of us have heard by now, became the first digital currency to solve the double spending problem – a flaw in digital cash in which the same token can be used twice - without using a centralised system.
Blockchain has evolved rapidly since then, and become something far greater than initially anticipated. It was originally intended for the use of bitcoin, but its uses are nearly limitless. In short, the blockchain is a decentralised, incorruptible digital ledger of economic transactions, that can be programmed to record anything we find valuable. The ingeniousness of the blockchain is the security and its decentralised nature.
A transaction on the blockchain could be as follows; you decide to use some of your bitcoin, and initiate a transaction. The transaction is broadcasted to a network of peer-to-peer connected computers known as nodes, which then validates the transaction with algorithms. After verification is complete, the transaction is combined with other transactions to create a new block of data, which is added to the existing blockchain – permanent and unalterable – and the transaction is complete.
If this is still confusing, I understand, it can be quite difficult to wrap your head around it. Suffice to say, the blockchain allows transactions of information that are literally incorruptible, due to it not being centralised. In order to hack it, you would have to hack the majority of all nodes (computers) that make up the network, which is extremely unlikely to happen.
There are an infinite number of uses for blockchain technology, and ICOs (initial coin offerings for start-ups in the blockchain space) are taking advantage of this, by offering a variety of services on the blockchain. It is looking something akin to the dot-com boom, where companies were jumping on to utilising the benefits of the web. Well, now we are in the early adoption period of companies looking to be first to market with utilising blockchain technology to offer a unique business service.
Obviously, not all of these services will turn out to be profitable, not all companies will be successful, but it’s easy to see the business value for data to be completely secure, and utilising a decentralised network. For instance, you can send Bitcoin to someone in another part of the world without having to pay a bank for the transaction, and this transaction is very fast.
Another great way that blockchain could be employed that I find exciting, is within public as well as private record keeping. An idea that I had could be that universities can store all exam grades/transcripts on current and previous students on the blockchain, and this data could be easily accessible anytime, without the need to go through the university. It would also be impossible to falsify these records without altering all subsequent blocks in the chain – something that would require the agreement of a majority of the network of nodes, which obviously would not happen. In summary, a candidates university records are safe online, accessible anytime, and completely accurate data. Being a recruiter, this would be incredibly useful for me, and for my clients.
How can blockchain benefit us?
On a personal level, blockchain could benefit us because it could mean services we are already using will soon have far more appealing alternatives. For example, why use Spotify or iTunes if a similar service becomes available where your money goes straight to the artist instead of Spotify or iTunes taking a significant cut? Naturally, from a music artists side, they hugely benefit from increased revenue, and the channels to market are significantly widened. The same argument can be applied to many other services. Blockchain has the ability to disrupt huge parts of society, so for that reason alone I would argue it is worth it to try getting a better understanding of it.
On a business level – and this is where it becomes immensely interesting for me as a recruiter – it is imperative that you stay in touch with where technology is going next. This is a perfect time for companies to take the tentative first steps into the world of blockchain, and for that, you need to hire the right people to help you with development. Similarly, the large amount of new ICOs means that a huge number of specialised developers are needed in order to create the technology needed to bring their visions to life, and this is where myself and my company Code Resourcing comes in. It will be hugely gratifying to be able to partner with these companies to bring blockchain to the masses, improving future services and ways of working.
Right now one of the biggest challenges companies who want to work with blockchain technology are facing, is finding the right people to do the job. Fortunately, I love challenges and I love recruiting, it is what I do! I have always found it gratifying to search and headhunt the ‘hard to find’ candidates, the top 5%. So now, Code Resourcing will be launching an entirely new website this November, with a new logo, and a new brand identity, that reflects our move into blockchain territory. So, watch this space! 😊!