The WorkChain.io Protocol creates a flawless system for automating payroll and allowing it to work in real-time. In order to achieve this, WorkChain.io needs to connect all steps into one flow from work validation to payout, creating a new ecosystem/economy.
The immutable records on WorkChain.io are built through transformational blockchain technology. Blockchain is a distributed ledger – a peer-to-peer, decentralized database – to which only authorized parties can add “blocks” of data, which must be verified through the consensus of those with access before they are permanently recorded, ensuring the information is immutable and protected from manipulation. Through this consensus model, blockchain breeds transparency and trust in the data it stores.
By implementing blockchain’s consensus model, the data stored on WorkChain.io is time-stamped and reviewed for verification by the approved entities on the platform using a set of comprehensive verification standards and the platform’s Trust Score Protocol. In combination, these standards and the Trust Score Protocol produce trusted, complete records that can be accurately used for recruitment and accessing an individual’s financial position, opening up employment, payment and capital opportunities for individuals.
Each statement about work or payment histories on the WorkChain.io protocol will be written as a record.
Each record is created by either:
a) the subject of the record (I.e. an individual); or
b) by the entity issuing the record (I.e. an organisation or institution).
Trust Records are created through the Trust Score Protocol, which relies on the connections between who is creating the record (‘From Whom’) and who it is being created about (‘About Whom’), or via a verified third-party related that is related to the ‘From Whom’ entity to verify the authenticity of the record. This proprietary Trust Score Protocol is explained in further detail below.
Proof of Work Records is written by applications integrated with WorkChain.io whereby the creator of the record is via a direct integration with a trusted third party and cannot be altered by an individual user. Each Work Record is multi-signed by both the Proof of Work Application as well as the Organization it relates to. Proof of Work Records do not require verification through the Trust Score Protocol.
Records on WorkChain.io are formed based on statements made to the platform by individuals and work, education and payment entities. These statements are defined in three levels:
A statement made by a user on the platform is made public, time-stamped, and immutable. Votes are cast on these public statements by individuals to ensure verification, and the net score is what determines the authenticity of a record.
Not all votes are equal and they are based on a number of factors, such as their identity, score on the platform, and connection with the entity they are making a statement about. These factors are represented through an individual’s Trust Score, which will be explained in detail below.
Level 2 statements are about specific work performed within a level 1 statement. for example, shifts, time clocks, projects, and tasks. This data is added to WorkChain.io through Proof of Work applications and multi-signed by companies and employees to confirm it. By default, level 2 statements are not publicly visible.
Level 3 statements include payment information related to Level 1 or 2 statements, acting as a form of settlement for the work undertaken. For example, money earned for undertaking a certain job, project or task. In this context, Level 1 statements relate to monthly or annual salaries, whereas Level 2 statements will be daily, immediate and one-off task-based payment records.
Underpinning the trust, transparency, and immutability of the data shared on WorkChain.io is a set of strict verification standards that secure the information. Each record on WorkChain.io has elements that are standard and this data is included in the hash of the records to secure the transactions:
Records will also feature variable descriptions that allow data to evolve over time, without compromising core record data.
There are three participant categories in the WorkChain.io Protocol that create the seamless end-to-end payroll process that happens in real-time:
Funds Providers — Employers and Lenders
They’re each involved in the work validation to payout flow in a particular way, as explained below.
Naturally, at the center of instant payroll are employees: the people who do the work and need to get paid. They must have a unique identity to which work records and payments can be linked. This requires them to create a workID, to which their hours, shifts or tasks are permanently linked.
Validators are systems that can provide information (proof) that someone has worked. This will primarily come in the form of the number of hours worked or attendance, as this is how the world typically works. However, with the increasing shift to objective and results-based work, validators will also be able to provide proof of work connected with an objective, task or result being completed.
Any type of time tracking or shift scheduling system can provide this time information, for example Humanity.com or WorkPuls.com.
For employees to get paid, there are two sources the money comes from: one, directly from employers; or, two, from lenders.
Option one is employers paying employees by running payroll through WorkChain.io directly. In this case, instead of paying traditional payroll processing fees and relying on banks for payments, they’ll simply stake tokens on the WorkChain.io platform to make cryptocurrency payouts. It will mean almost no cost to run payroll. In this scenario, onboarding employees to WorkChain.io will be mandatory.
If an employer isn’t using the WorkChain.io platform, this won’t prohibit employees getting paid instantly. When an employee does work for a non-registered employer, their pay will be advanced through lenders and later recouped when they get paid by their employer.
This will have higher cost for employees than if they are receiving money directly from their employees due to transaction fees. WorkChain.io will be the first lender on the platform and in future organizational and peer-to-peer lending will exist.
To guarantee trust in the statements and records on WorkChain.io, the platform has a proprietary Trust Score Protocol that assigns each entity a Trust Score, a marker of their standing and trustworthiness.
The Trust Score protocol works much like Google’s PageRank algorithm, calculating Trust Scores by evaluating the connection between entities and individuals, their behavior, and data to create an accurate measure of their trustworthiness and, in turn, which records can be trusted. In short, a record is only as strong as the standing – interpreted through its Trust Score – of the entity that creates the record.
Using WorkChain.io’s Trust Score Protocol, individuals with verified connections to an organization may also vote on statements made on WorkChain.io by an individual to verify them. For example, an individual who works for an organization about which a statement has been made.
To deter false verifications and dishonesty of entities, negative scoring is applied to an entity’s Trust Score if erroneous data is detected by WorkChain.io. And if an entity creates a new identity, its Trust Score will be erased, much like wiping a credit history.
Each entity on WorkChain.io has a unique identity that is verified through an active email address of the organization and a nominated, verified employee of the entity. Entities use this unique identity to contribute records and vote (verify) on the claims made on WorkChain.io by individuals (employees, students) about whom the records on WorkChain.io are about. Thus, an entity’s identity is permanently linked to the records it creates to build its Trust Score.
Each individual entity on WorkChain.io will be assigned a unique address (‘workID’), which unifies all their work records regardless of the underlying or initiating source of the record.
Unlike current systems where an individual can easily recreate their ‘public profile’ and build (or rebuild) their history at any time, with WorkChain.io this will be heavily disincentivized because individual work records can only be associated with a single entity of each type, and once that record is authenticated via WorkChain.io it cannot be altered so it is permanently recorded to the public ledger.
To help illustrate how this mechanism works and why WorkChain.io is so effective, take this example:
1. John attended Acme University and completed a degree in Sociology between 2006-2010 and then takes a job at ABC Company from 2010-2014.
2. John later works for XYZ Company from January to February 2014.
3. John decides that his time at XYZ Company doesn’t reflect well on his record given the short nature of employment and the manner in which he departed the company, so he decides to eliminate it from his record.
4. In today’s world, John simply updates his LinkedIn Profile and CV, removing his short stint at XYZ Company, effectively eliminating his time at the company from the public record, unbeknownst to potential future employers.
5. With WorkChain.io, even if John amends his LinkedIn and CV to remove his time at XYZ Company, this period of employment will still be publicly viewable as it has been permanently recorded to his ‘workID’ on WorkChain.io and cannot be altered.
6. John could try and create a new workID on WorkChain.io, however as each workID is assigned a unique identifier that permanently links it to records on WorkChain.io, none of his previous records will be attributable to this new workID.. Therefore, choosing to create a new workID would eliminate his entire work record history, creating a strong disincentive to do so.