Web3, which includes blockchain, decentralized applications (dApps), and smart contracts, is a relatively new technology, and it's still in its early stages of development. However, it has the potential to transform the world of talent acquisition in a number of significant ways.

First, let’s define Web3 (also called Web 3.0, referring to the previous iteration, Web 2.0). While its origins lie in cryptocurrency and blockchain, the main purpose of Web3 is decentralization. Instead of storing information through large information and data companies (like Google), information can be freely shared and stored in many locations (this is called distributed computing). Everything will be shared by DAOs (Decentralized Autonomous Organizations). DAOs are groups built for one purpose, are community run, and rely on each member within the DAO to work in the interest of reaching a common goal.

If you’re not familiar with Web3, there’s a good video that explains the basics from Harvard Business Review.

5 Important Ways Web3 is Transforming Talent Acquisition

1. Decentralized hiring platforms. Web3 enables the creation of decentralized hiring platforms that allow job seekers and employers to connect with each other directly without the need for intermediaries (like recruitment agencies). These platforms use blockchain technology to ensure that candidates' credentials and work history are validated and cannot be tampered with.
    
2. Smart contracts. Web3's smart contract technology can help to automate the hiring process, ensuring that both employers and job seekers adhere to predetermined terms and conditions. This can help to reduce the risk of disputes and make the process more efficient. Smart contracts can be used not only for automation, but also for rapid verification of credentials and payment of salaries.
    
3. Tokenization of skills. Web3 enables the tokenization of skills, which means that individuals can create tokens that represent their skills and experience. These tokens can then be traded on decentralized marketplaces, allowing individuals to monetize their skills in new ways and effectively “sell” them to the highest bidder.
    
4. Decentralized identity verification. Web3 enables decentralized identity verification, which means that job seekers can prove their identity and credentials without having to rely on centralized authorities. This can help to reduce the risk of identity fraud and make the hiring process more efficient.
    
5. Improved candidate experience. Web3 can improve the candidate experience by making the application process faster and more personalized. Candidates can use decentralized platforms to showcase their skills and experience – and employers can use the same platforms to find talent that matches specific requirements.

Related: How Blockchain is Changing and Shaping the Global Labor Market

At Cisive, PreCheck's parent company, we’ve been following this transformation closely. In January 2020, Cisive joined 14 leading, enterprise multinational labor market organizations to launch the Velocity Network Foundation (VNF). VNF is a collaborative, vendor-neutral, nonprofit organization established to define, deploy, and champion the Velocity Network: a globally accessible, trustworthy “Internet of Careers” powered by blockchain technology in response to growing data privacy, security, and market pressures.

Blockchain allows companies like PreCheck to integrate with a secure data network that has the ability to issue, share and verify career credentials, ensuring highly accurate information and speeding up the timeline for background screening before hire. Additionally, because blockchain data is an uneditable sequence, it also has the potential to enhance security, helping HR departments to avoid data breaches.

Web3 has the potential to transform the world of talent acquisition by creating more efficient, decentralized, and secure hiring platforms. As the technology continues to develop, we expect to see even more innovative solutions that will help connect job seekers with the right employers and employers with the right talent.