Software giant IBM is creating a unique blockchain tool that will mechanize the reconciliation of agreements related to casual labor.
Tech news site CIO has reported that IBM deems that blockchain, specifically, is ideal for managing thousands of issues related to casual work agreements in businesses.
A casual work agreement, also referred to as a contingent work agreement, is a temporary employment proposal, which normally provides laborers little job security, and usually part-time or remuneration on a per job basis.
Such a contract is usually employed by consultants, independent contractors, freelancers and temporary contract workers, referred to as temps.
IBM continues to focus on blockchain for creating tools that could enable enterprises to better handle their business operations such as contracts, as it points out that managing high volume agreements created by casual workers is a complex task and inadequately mechanized job for companies as of now.
Burton Buffaloe, leader of global logistics and blockchain at IBM, explained the issues faced by contractors and how blockchain could assist in addressing the problem.
“One of the biggest pain points of all suppliers of contractors is invoice reconciliation. Blockchain lives in the spaces where there is friction and discrepancy.”
Referred to as the Contingent Labor on IBM Blockchain, the tool mechanizes the tracing of purchase orders and time documents, while acting as third party between accepted parties in the invoicing procedures, Buffaloe detailed.
Should the system’s global launch turn out successful, it will soon reach the market, CIO stated.
The US headquartered company is not the only one to understand the benefits of blockchain technology in invoicing.
China’s internet giant Tencent, which owns social media platform WeChat, developed and handed over to Shenzhen Tax Service a blockchain powered invoice tool in 2019.
As of November 2019, Tencent’s platform had handled invoices consisting of a total value of more than 7 billion yuan (almost $995 million).
IBM carries out its research on blockchain and its applications, such as tokenized financial facilities. Of late the company was given a patent for the creation of a “self-aware token” structured to document events associated to offline trades.
