Tech giant IBM is developing a new blockchain product that will automate the reconciliation of casual labor contracts.

Engineering science news site CIO reported on Feb. 3 that IBM considers the blockchain particularly well-suited to tackling the hurting bespeak for businesses of resolving discrepancies across thousands of casual piece of work contracts.

A casual piece of work contract — sometimes known as a contingent piece of work contract — is a not-permanent employment relationship, which typically offers contractees less chore security, and oftentimes part-fourth dimension or payment on a piece work basis.

It is thus used for work done by consultants, freelancers, independent contractors and temporary contract workers, known as temps.

Blockchain thrives on reducing friction, says IBM

IBM has its sights on the blockchain for enterprise management of such contracts, as it notes that processing the loftier volume of contracts generated by casual workers is a cumbersome and insufficiently automated task for firms at present. Burton Buffaloe, leader of global logistics and blockchain at IBM, said:

"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."

Dubbed the Contingent Labor on IBM Blockchain, IBM's system automates the tracking of time sheets and buy orders, while mediating between approved parties involved in the invoicing process, Buffaloe explained. Should the arrangement's worldwide rollout prove successful, it volition soon go to market, CIO reported.

Red china is already implementing blockchain for invoices

The U.S.-born tech giant is non the only global player to recognize the potential benefits of the technology for invoicing: in China, net behemothic Tencent — the developer of social media platform WeChat — provided the Shenzhen Tax Service with a blockchain-based invoice system final yr.

As of November 2022, Tencent's system had candy invoices comprising a total value of over 7 billion yuan (nearly $995 million).

IBM has continued to research blockchain and its applications, such as tokenized fiscal services. As reported, the business firm was recently awarded a patent for the development of a "self-aware token" designed to record events related to offline transactions.