=Paper=
{{Paper
|id=Vol-3921/phd-paper4
|storemode=property
|title=Blockchain in Digital World: Establishing New Trust Models in the Recruiting Domain
|pdfUrl=https://ceur-ws.org/Vol-3921/phd-paper4.pdf
|volume=Vol-3921
|authors=Anastasiia Gurzhii,Najmul Islam
|dblpUrl=https://dblp.org/rec/conf/icsob/GurzhiiI24
}}
==Blockchain in Digital World: Establishing New Trust Models in the Recruiting Domain==
https://ceur-ws.org/Vol-3921/phd-paper4.pdf
Blockchain in Digital World: Establishing New Trust
Models in the Recruiting Domain
Anastasiia Gurzhii1* and Najmul Islam1
1
Lappeenrannan–Lahden teknillinen yliopisto LUT, Yliopistonkatu 34, 53850 Lappeenranta, Finland
Abstract
Blockchain technology is generating significant interest in various industries, especially in the area of
credential verification during the hiring process. This manuscript examines the challenges faced by both job
seekers and employers in credential verification and presents requirements for developing a blockchain-
based credential verification platform. Through a series of interviews and workshops with credential
holders, career experts, hiring managers, and business owners, we empirically validated the relevance of
blockchain for optimizing verification processes. Our findings underscore the need for a user-centered
approach that engages not only businesses and HR departments, but also individuals and certificate issuers
in implementing blockchain-based systems. The study concludes with recommendations to address the
complexities of credential verification aimed at reducing the burden on applicants and increasing
confidence in the hiring process.
Keywords
Blockchain, recruiting, credential verification, long-term sustainability 1
1. Problem Definition
Blockchain has been around since 2008 and while academia is focusing on the theoretical frameworks
with benefits and finding areas where Blockchain can be adopted [1, 2, 3], companies resolve local
problems and propose solutions that cannot be implemented broadly [4]. Theoretically, Blockchain
can be adopted in different domains and it has been gaining more attention worldwide in recent years
[5], but the experts’ viewpoints from industries should be studied as well. This can help to provide a
better collaboration and fulfil the gap between academia and the real business world. To make
Blockchain more attractive, technological awareness should be increased, and different viewpoints
should be studied to understand whether it can solve problems that are typical in traditional systems
in various fields.
To identify the main challenges and gaps, I conducted an SLR on the topic of Blockchain for digital
transformation. The main findings revealed, that despite the perceived benefits from Blockchain
adoption, several challenges occur and should be taken into consideration. For example, all
industries’ struggles are linked to data management and confidentiality. Governments are seeking to
control industries and all innovative solutions should comply with legal privacy requirements (e.g.,
European Union General Data Protection Regulation (GDPR)) and it can be a barrier for completely
decentralized platforms [6]. Thus, companies will choose more proven data services that
governments accept. While the speed of most common technologies, such as ERP or cloud solutions,
grab the market share and evolve so fast, Blockchain is nowhere near that [7]. The technology is
relevant for narrow problems and a special application is required. But still, there is no specificity
about Blockchain sustainability in the long term. There is no unified ecosystem with clearly written
rules, standards and regulations [8]. Regardless of the number of industries that implemented
Blockchain, continuous development and more experiments are required to unleash its potential [9].
Additionally, the risks related to early development stages and lack of experience with such large-
scale solutions should be discovered more [6].
1
The 15th International Conference on Software Business (ICSOB 2024), November 18-20, 2024, Utrecht, the Netherlands
∗
Corresponding author.
anastasiia.gurzhii@lut.fi; najmul.islam@lut.fi
0000-0003-2187-7509; 0000-0003-2236-3278
© 2024 Copyright for this paper by its authors. Use permitted under Creative Commons License Attribution 4.0 International (CC BY 4.0).
CEUR
ceur-ws.org
Workshop ISSN 1613-0073
Proceedings
Potential Blockchain customers also miss opportunities because of the perceived technological
complexity [10]. Blockchain is not a panacea for all companies and with this rush they can neglect
other existing possibilities that suit better for their case [11]. Experts with higher managing positions
support Blockchain less and are claimed to be more sceptical about new technologies benefits [9].
They are ready to adopt it only when benefits and effectiveness are vivid [12] and compliance with
legal regulations is established. Consequently, reputation and experience are the most common
sources of trust in industries [13] and in the beginning, a lot of effort is needed to overcome all issues.
At the same time, the application of blockchain in the identity verification and management
domain has gained significant attention in recent years [14, 15], and self-sovereign identity (SSI) on
the blockchain is seen as a possible solution for handling private identity details, yet research gaps do
still exist. According to statistics from the European Union [16], more than 23 million non-EU
citizens are living in the EU member states. In addition, as per the report, every year on average more
than 4.2 million people immigrate to one of the EU countries and 2 million people emigrate from the
EU. These numbers are expected to grow due to ongoing wars and conflicts in various parts of the
world and the labor shortage in Europe. A recent report [17] states that there would be over 40
million people needing to import different certificates from or to EU countries by 2028.
Overall, it is essential to contribute to the understanding and development of blockchain-based
credential verification systems by identifying key requirements, challenges and opportunities for
their implementation, especially in the recruiting industry. The existing gap between theoretical
foundations and practical applications could be addressed by emphasizing the importance of cross-
industry collaboration, regulatory compliance and technological awareness. The study uses a mixed-
method approach, combining qualitative and quantitative methods to comprehensively analyze the
topic.
2. Knowledge Gaps
The increasing demand for efficient, reliable, and secure credential verification systems has led to the
exploration of innovative solutions. Traditional methods, often paper-based and manual, are time-
consuming, error-prone, and vulnerable to fraud. Digital solutions have emerged but still face trust,
data security, and regulatory challenges [18]. Especially, the need for preserving privacy and
ensuring compliance with data protection regulations, such as the General Data Protection
Regulation (GDPR), has become paramount [19, 20]. In the context of credential verification, privacy
preservation is particularly crucial since the data involved often contain personal and sensitive
information that could lead to identity theft or other malicious activities if mishandled [21].
A verification service could also be implemented with non-blockchain solutions, for example, with
current web technologies and relational databases. However, relying on a public blockchain has the
following advantage over a traditional solution: it is not dependent on a single company. First, most
of the prior literature on blockchain-based self-sovereign identity is conceptual in nature and thus
lacks practical design guidelines for actual implementations and empirical evidence from industry
experts [15, 22]. Consequently, there is also a lack of blockchain implementations, and their impacts
and challenges in the real world are still not well understood, especially in the recruiting domain.
Second, according to the preliminary findings, some Blockchain solutions are being used but are not
yet available to the majority. Even though the technology is popular and there is a lot of information,
it is mostly theoretical, and the emphasis is more on creating a problem that blockchain can solve,
rather than the other way around. This leaves a certain imprint and suggests that more research
should be done among those who use the technology preferably over a longer period. Consequently,
the manuscript aims to identify the requirements for implementing blockchain-based credential
verification solutions and answer the following research questions:
1. RQ1: How can a blockchain-based user credential verification system improve trust,
transparency, and integrity?
2. RQ2: What are the factors that influence the technology adoption in the recruiting domain?
3. RQ3: What factors should be taken into account during blockchain-based solutions
development and adoption in the recruiting domain?
3. Research Method
While the purpose of this work is to create new knowledge and supplement existing findings with
new evidence, mixed methods will be used. The chosen research design will be both qualitative and
quantitative. Such a combination helps compare collected data, to find contradictions between
findings. At the same time, the reflection of participants’ points of view and their experiences will be
grounded in the final paper. Methodological flexibility is another reason because it can be adaptable
for many study designs and helps elucidate more data than only in one research. The research is
strong because its objective is the development of new solution concepts. For a design-based
framework the eight components of an information systems design theory [23]. For empirical data
that will be collected from specialists utilizing the BRT (behavioural reasoning theory) [24]. To
analyze the collected data and classify issues the Gioia method is used [25]. Through the use of
frameworks such as behavioral reasoning theory (BRT), Gioia method for data classification, and
design-based information systems theory, the study provides a robust and adaptable approach to create
innovative, reliable, and scalable blockchain solutions.
4. Timeline
The expected graduation time is February 2026 at the latest. Figure 1 presents the estimated plan for
the remaining PhD time.
Figure 1: PhD process timeline
The estimated schedule is for four years. The results trajectory is on a half-year basis and will be
updated every six months. I plan to create a manuscript out of 5 papers. While one paper is a
systematic literature review, three papers are qualitative, the fifth one will focus on quantitative data
analysis.
5. Preliminary results
There are 4 papers so far. Table 1 presents the publication plan. The last and the biggest one is still in
progress.
Table 1: Articles list
Article Topic Publication Source
date
1 Blockchain Enabled Digital Transformation: A 07.2022 IEEE Access
Systematic Literature Review [26]
2 Blockchain Adoption Decision-Making 11.2023 I3E 2023 Conference
Process in Business: An Empirical Study [27]
3 Understanding the Challenges Surrounding 11.2023 I3E 2023 Conference
Decentralized Applications: An Empirical
Study [28]
4 Designing a Blockchain-Based Credential - ICSOB 2024
Verification System for Improving Global
Mobility of Workforce
5.1. Systematic literature review
The future growth and development of blockchain will depend on how well management models
are adapted to the specific needs of individual companies and their ability to remain flexible. Based
on the current review, research in this field is scattered across various transdisciplinary areas.
Figure 2: Comprehensive framework for blockchain in digital transformation
The increasing focus on blockchain’s role in digital transformation has sparked interest among
researchers. The key themes identified include: 1. challenges and barriers; 2. perceived benefits; 3.
drivers of digital transformation: emerging technologies. These themes were further broken down
into sub-themes to provide a more nuanced perspective. The in-depth literature review emphasizes
the critical role that digitalization plays in facilitating the transition to blockchain technologies.
First, it is important to identify the business process that requires digital transformation using
blockchain with an appropriate motivation and identify the specific problem that should be
addressed. It provides an awareness of the problem and the importance of resolving the problem with
blockchain. Second, developing the blockchain solution that solves all the complexities of the
problem identified earlier and should satisfy all the business goals (Strategic, Tactical, Operational
Level). A solution can be developed based on any new technology, including blockchain, taking into
account its potential benefits and barriers. Third, the solution must be implemented to establish the
required functionality and conduct activities such as experiments or simulations to see how well the
developed solution solves the problem. Fourth, in the management phase, all processes and
interactions in the organization are changed to facilitate the digital solution. At this stage, the
decision makers in the company must determine whether to make adjustments and go back to
previous steps or move forward.
5.2. Blockchain-based solution adoption process: evidence from business
In this study, we identified the key dimensions that business professionals consider before
adopting blockchain at the corporate level and developed a decision-making framework to support
the adoption process. Our research led to several conclusions [27].
Figure 3: Blockchain adoption decision-making framework
First, we contributed new empirical insights, emphasizing the need for a broader perspective
when approaching blockchain adoption. Second, through data analysis using the Gioia method, we
identified five core dimensions and 18 sub-dimensions related to blockchain utilization. The
framework was validated through a second round of interviews with five experts, revealing that the
decision-making process and prioritization of these dimensions vary depending on factors such as
company size and blockchain awareness. Third, a deeper understanding of business perspectives
highlights numerous areas for potential improvement in the adoption process.
Afterwards, we provide a detailed description of all dimensions and their prioritization according
to experts' comments. We divide impact factors into 3 levels to explain the most crucial ones for
practitioners. For example, we found that top management support and the technology integration
complexity are considered highly important ones, while industry readiness and competitors' pressure
do not hinder business people from blockchain adoption. Second, under the prior research, we
identified that there is no clear answer when to use blockchain at the corporate level. Our results
revealed that it is highly important to consider all dimensions in specific requirements, challenges,
and potential benefits of blockchain adoption. This results could support the adoption process of
blockchain-based systems in recruiting domain as well.
5.3. Challenges surrounding blockchain-based application
Investigating the development of decentralized applications (dApps) from the developers'
perspective is important because developers are the primary architects that translate the theoretical
principles of blockchain into functional systems. Understanding their perspectives, challenges, and
decision-making processes can shed light on practical barriers such as usability, scalability, and
regulatory compliance that are often overlooked in conceptual studies. In the context of credential
verification, this perspective is particularly valuable for identifying the technical and design
considerations needed to balance decentralization, data security, and user privacy while complying
with standards such as GDPR. In addition, feedback from developers can help provide practical
frameworks and best practices to help create more efficient, reliable, and user-friendly dApps. By
focusing on their experiences, the research can help bridge the gap between the theoretical potential
of blockchain and its real-world applications, advancing knowledge on how to effectively implement
and maintain blockchain-based systems in sensitive areas such as credential verification. The study
of existing dApps has led to several key conclusions [28].
Figure 4: Conceptual framework of dApps management
First, even though the decentralized applications (dApps) sector is gaining momentum, it remains
underdeveloped. A significant portion of the population lacks sufficient knowledge of blockchain
technology, which some developers take advantage of by creating low-quality projects. Second, the
lack of government involvement and standardized regulations has created an open space in which
low-quality projects can flourish. This environment allows small, low-budget teams to demonstrate
their potential and gain market share in various sectors. Third, while progress is uneven, it is still
progress. A closer look at the market reveals many areas for improvement and a surprisingly small
group of developers focused on building high quality products. Finally, the maturity level of dApps'
user interface currently ranges from “user-hostile” to “developer-centric”, with little attention paid to
“user-centricity”. It will likely take several years for this area to fully mature, and there is significant
room for improvement.
5.4. Essential requirements for a blockchain-based solution in the recruiting
domain
This paper is currently accepted but has not published yet. Blockchain technology has recently
attracted significant attention in various fields. In this study, we investigated the challenges faced by
job seekers and employers in the recruitment process in relation to credential verification and
identified the key requirements for developing a blockchain-based credential verification platform.
Our research has led to several key findings. First, we empirically validated the importance of
blockchain-based verification systems for credential holders and career professionals. Second, the
data collected through interviews and workshops allowed us to formulate key design requirements to
guide the development of future systems. Third, a closer examination of HR managers' and business
owners' views on verification processes revealed that there is a heavy burden on applicants.
Figure 5: A framework for scoping blockchain-based verification solutions
This underscores the need to focus not only on the interests of businesses and HR departments but
also on engaging individuals and certificate issuers in the adoption of blockchain-based verification
systems.
5.5. Reasons that affect the adoption intention in the recruiting domain
This study is currently in progress. For now, there are 293 responses from experts that somehow
involved in the recruiting process. The main objective of the paper is to analyze values, reasons for
and against that affect the adoption intention of blockchain-based credential verification solutions.
6. Expected contribution
Ideas, that will be presented in the manuscript are relatively new and still, there is limited empirical
evidence from specialists in various EU countries from the recruiting domain. The findings may
supplement existing studies and increase the trust among blockchain users. When the technology
implementation has a positive impact on the companies’ operational capabilities as well as business
transformation (e.g. in the supply chain), some blockchain features (e.g. traceability, transparency,
decentralization, etc.) will attract users and encourage them to discover more about the technology in
other spheres. But at the same time, it can weaken the position because of full traceability and data
transparency. That is why future practitioners can use the results as a basis for development,
adoption and establishing trust. The findings are aimed to be universal and not limited to one
industry. A new perspective may increase the number of research that is linked with actual cases, not
a plain intention to adopt the technology considering possible limitations. My proposed research
project is significant, current and will influence theory as well as policy. Shortly, the expected
contribution is:
1. Empirical Validation of Blockchain in Credential Verification.
2. Identification of essential Design Requirements.
3. Practical Recommendations for System Development based on the comments from industry
experts.
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