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This article was published on November 10, 2017

    Is Blockchain Going to Make Human Capital Obsolete?

    Is Blockchain Going to Make Human Capital Obsolete?
    Zach McGavin
    Story by

    Zach McGavin

    I'm a freelance writer and a health enthusiast. I am also in the industry of home improvement for quite some time now and I use my experienc I'm a freelance writer and a health enthusiast. I am also in the industry of home improvement for quite some time now and I use my experience as my primary source of reference when I write.

    Image result for blockchain

    Last year in September, Barclays carried out the very first transaction using the blockchain
    technology. A process which usually takes 6 to 7 days to be completed was conducted in less
    than 4 hours. Approximately 80% of the banks are now working to develop their own blockchain
    technology because the wonders being done by it.

    Other big names like IBM and Nasdaq are also in action to come up with solutions for easier and
    quicker transactions. The biggest value point of blockchain is that it eliminates the involvement
    of third parties and establishes vague trust between the two strangers. Just like blockchain is
    replacing middlemen, is it going to extinguish the need for human capital too in near future?

    Why Has Blockchain become a Rage?

    Throughout the history of the world, there are both winners and losers whenever a paradigm
    shift takes place. Today, the cryptocurrency market is worth a mind-boggling 100 billion dollars
    or even more than that. Each startup is already relying on blockchain to push trustworthiness
    and transparency in the digital ecosystem and to lure more investors.
    The blockchain technology enables companies working in the accounting and supply chain
    management etc. to carry out permanent decentralized transactions. It has the tendency to
    eliminate the human error and to perform any given task in a limited time. There are no delays
    or additional costs involved and the distributed ledger allows making the authentication of
    various transactions easier too.

    Not just finance, businesses belonging to different niches including healthcare, real estate, and
    even food are trying to figure out how blockchain can help them in achieving their goals faster.
    People are actively looking for talent in the blockchain space with the number of postings
    regarding such skills being trebled on LinkedIn in the past year.

    Are Humans Ready to Embrace Disruption?

    With the penetration of blockchain in different industries, there are high chances of human
    capital being compromised but are humans ready to accept this disruption? A survey was
    conducted by the Chartered Institute of Management Accountants (CIMA) and Thomson
    Reuters that revealed that only 4% of the accountants considered blockchain to be disruptive for
    their industry. They fail to realize that blockchain is imposing more threat than machine learning
    to humans.

    Former CFO of J. P. Morgan’s Investment Bank and CEO of Digital Asset Holdings, Blythe
    Masters, says, “You should be taking this technology as seriously as you should have been taking
    the development of the internet in the early 1990s.”

    The Bottom Line

     

    The ultimate dilemma of this situation is that blockchain is ready to become a ground source for
    all the businesses just like the internet is today. Not incorporating it means that the businesses
    will be lagging behind and including it will eventually decrease the need for human capital
    making it obsolete.

    Even a startup like CannaSOS which aims to become a comprehensive advertising and social
    network platform for the cannabis industry is relying on this technology to discover wide
    horizons. They are able to achieve their goals and targets related to bringing flexibility to the
    regulations regarding cannabis industry. Through their Pre-ICO, they are already gaining a lot of
    investors and people who believe in their cause.
    Despite the possible threats imposed by the blockchain technology, it is here to stay and take
    the world by storm.