Blockchain Meets HR: Just How Big Could This Market Be?

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

The rise of Bitcoin (BTC) and other cryptocurrencies like Dogecoin (DOGE) have popularized the idea of the blockchain. This technology arguably has the potential to revolutionize the way business and commerce operate on a fundamental level.

Blockchain allows for greater transparency, efficiency, and security. Essentially, it is an immutable, shared database of information. In contrast to traditional networks, the information is gathered into blocks, which are verified by the different participants on the network and then added to the chain of blocks that came before. And critically, no single entity owns or controls the information.

The power of this system has led major players as diverse as JP Morgan Chase & Co. JPM, Microsoft Corp. MSFT, and Walmart Inc. WMT to invest in the technology for their own operations. This trend is seen across many industries with companies of all sizes. Some that have the means are investing in-house, but most are looking outside to servicers who can provide blockchain solutions to them. This need has given rise to the rapidly growing industry of blockchain as a service (BaaS).

The research firm Zion Market Research predicts that the BaaS industry will grow with an eye-watering compound annual growth rate of 85.09% to reach $30.59 billion by 2024.

TransCrypts Solutions Inc., an innovative BaaS company currently undergoing a round of funding, is aiming to help companies streamline their HR departments. The company’s product allows companies to offload the costly headaches and labor surrounding the verification of employee information for background checks.

TransCrypts sits at the nexus of BaaS and another major industry, background checks. According to ReasearchandMarkets.com, the background check market is expected to reach almost $8 billion by 2026.

Transcripts believes that it can save companies a lot of time and money by automating the process of verification of employee information. The company estimates that 150 million hours are wasted by HR departments each year on this tedious process. That effort translates to $4.5 billion worth of precious HR managers’ labor.

The company says it is targeting businesses of 40 or more employees, the tipping point at which TransCrypts believes HR departments begin to spend an outsized amount of time on employee verification tasks. Assuming businesses pay for the lowest tier subscription with TransCrypts, the total addressable market for the company is reportedly $2.7 billion each year.

If you are interested in learning more about the company and its crowdfunding raise, check out startengine.com/transcrypts.

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The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.