US tech giant IBM is developing a new blockchain tool to simplify the reconciliation of informal contracts of labor.
The company has found that the blockchain is well suited to addressing the pain point for companies solving discrepancies through several casual labor contracts.
IBM is not the only global company to recognize the potential advantages of the invoicing technology. In China, Tencent has provided a blockchain-powered invoice system to the Shenzhen Tax Service last year.
As of November 2019, Tencent processed invoices worth over 7 billion yuan (nearly $995 million).
IBM has recently won award for developing a “self-aware token” designed to record events related to offline transactions.
Burton Buffaloe, leader of IBM’s global logistics, said:
“IBM’s Contingent Labor on IBM Blockchain automatically tracks time sheets, purchase orders and other information and secures the appropriate approvals by the approved parties.”
“One of the biggest pain points of all suppliers of contractors is invoice reconciliation,” he added. “Blockchain lives in the spaces where there is friction and discrepancy.”
Contingent Labor is hardly the first technological foray by IBM. In 2017, IBM has rolled out Food Trust, a blockchain-based division tracking food supply chain. The US tech giant has partnered with Maersk on TradeLens in 2018.
Buffaloe also said:
“IBM is prepping the solution for a global rollout in 2020 and is working to commercialize it to potentially transform the $400 billion market for contingent staffing by addressing the 2 percent spent on resolving disputes for non-compliance.”
A casual labor contract is a non-permanent labor arrangement that usually provides less job security for contractors, and often part-time or piece-based payment.
The new technology is used by consultants, independent contractors and temporary employees.
“It takes a long time to understand the technology and fit it into business processes,” Buffaloe said, adding that internet technologies took long time to advance.
Cryptolydian earlier reported that the US presidential candidate Andrew Yang talked about digital assets and their potential impact on local economy ahead of the upcoming caucuses of Iowa State.