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Many individuals make claims about their skills, which are often accepted as truth by organizations. This can result in significant financial losses for companies that hire individuals with fake qualifications or the wrong skill set. To address this problem, a skill verification system using decentralized consensus can be implemented to validate skills in an objective and transparent manner.

Using blockchain technology, this system can greatly reduce the time and resources spent by recruiters on competency and skills checks. It also increases confidence and productivity among management within an organization. By recording and verifying skills on a secure and accessible network, employees are able to provide evidence of their abilities that have been officially approved or endorsed by their previous managers or certificate providers. A blockchain-based skills chain for employees also ensures transparency and accountability in the development of their abilities. This can aid companies in making more informed hiring decisions and utilizing their staff to their fullest potential for specific business requirements.