Future and Opportunities of Blockchain Technology in the System of Labor Relations

Abstract:

The author describes the future of the blockchain technology in the system of labor relations in the context of economic science. The basis of the paper is the transaction costs theory, which considers the “transaction costs” category as an important part of any economic relations, with the exception of ideal socialist relations where the transaction costs are minimal. The purpose of the article is to show the future of blockchain technology in the system of labor relations as a chain of transactions based on the theory of transaction costs, which excludes fraud, theft, violation of rights, opportunism, i.e. minimizes transaction costs. The author states that it is necessary to revise the classical ideas of O. Williamson about the classes of regulatory structures that enforce labor relations as the widespread introduction of blockchain technology in future may reduce the transaction costs so much that a new regulative structure may appear, which the author calls “smart contract”. The article shows the ways of blockchain technology usage that can help to formalize certain aspects of labor relations with the decrease of transaction costs. The author describes the opportunities and the gaps of the usage of blockchain technology in the system of labor relations.