One year after the Israel-Hamas conflict began, his blockchain industry faces challenges as talent grows “hesitant to consider” roles amid regional tensions.
There are concerns about a brain drain as a result of Israel’s increased emigration.
With some talent “hesitant to consider” positions within its boundaries, the Israeli blockchain industry is dealing with the obstacles of growing geopolitical upheaval in the region one year after the Israel-Hamas war began.
Despite this, Israeli business executives expressed optimism about the nation’s blockchain industry’s future.
According to a Statista report from August, 60,000 Israelis left the country 24 months before May. According to the business statistics platform, emigration increased by 25% since February 2023.
As emigration exceeds immigration, the numbers have sparked concerns about a potential “brain drain” in the state.
In a lecture in Kibbutz Nir Oz in August and covered by The Times of Israel, biology professor Aaron Ciechanover, a Nobel laureate, stated, “There is a huge wave of departures from the country.”
Citing university recruitment problems, Ciechanover warned about a scarcity of physicians. “We won’t have a country here as soon as 30,000 of these people leave,” he continued.
The whims of war do not exempt the blockchain industry. “Recruitment has indeed become more challenging” in the present climate, according to Yaniv Baruch, chief operating officer of the GameFi project Playnance, based in Tel Aviv.
“There has been a noticeable decline in job mobility within the tech sector.”
Following the October attacks, several media, including The Times of Israel-Hamas and The Jewish Independent, reported an increase in departure.
Baruch states, “Some professionals are reluctant to consider new job opportunities or relocate due to the uncertainty and security concerns.”
Taking constructive action
Individual companies and business owners have no authority over the ongoing dispute, but that doesn’t imply they have been inactive.
“We’ve expanded our recruitment reach, going beyond just local hires and embracing remote work,” Baruch informed us.
The growing focus on remote workers to cover the gap is a logical move in the blockchain business since many functions are already distant.
“We can now access a worldwide pool of skilled professionals who can contribute from anywhere in the world thanks to this shift [to remote work],” Baruch stated.
Additionally, we’ve highlighted what makes Playnance unique: working on cutting-edge blockchain technology and joining an innovative, dynamic team. It enables us to draw in enthusiastic individuals who are eager to have a significant influence on blockchain and fintech.
The political and personal
It is a statistical reality that emigration from Israel increased in 2023, but like with many statistics, it can be challenging to conclude the raw data.
Although emigration increased immediately after the Israel-Hamas conflict broke out, some analysts have also pointed to judicial reforms at the beginning of the year that reduced the legislative authority of Jewish courts as a contributing cause.
Additionally, people move for a variety of personal reasons. One member of the Israeli diaspora in Europe is Misha Lederman, head of strategy at FitFi application Sweat Economy. Sweat Economy’s headquarters are in Lisbon, where Lederman stays.
His motivations for leaving Israel-Hamas are personal, not political, like those of many exiles.
Lederman had nothing but good things to say about Israe-Hamasl and its blockchain industry. He highlighted the importance of “a blend of resilience, innovation, and global thinking, combined with a strong emphasis on education” and a “startup nation mentality” for the nation.
However, Lederman went on to explain why Israel’s military played a significant role in its success.
“Israel has become a global leader in cybersecurity and cryptography, and the Israeli military’s deep integration into Israeli society is crucial in fostering tech talent in these fields,” Lederman stated.
“Many tech entrepreneurs are veteran officers from Israel-Hamas Defense Forces military units, particularly from the army’s cybersecurity units, which have been a breeding ground for elite Web3 and blockchain innovators,” he continued.
An optimistic attitude endures.
According to Baruch and Lederman, the Israeli blockchain business has a bright future.
“I have a lot of hope for blockchain technology in Israel,” Baruch remarked. “Our nation continues to lead the world in development despite present difficulties. With more than 6,000 businesses functioning in various tech areas, Israel boasts one of the greatest densities of startups per population. Such a thriving environment fosters an innovative and entrepreneurial culture perfect for developing blockchain technology.
After Silicon Valley, New York, and London, Startup Genome ranked Tel Aviv as the fourth-best location in the world in a June survey of the most desirable areas for businesses. This was remarkably one spot better than the year before.
However, there is no denying that Israel’s economy is suffering. Debt is increasing, and growth has stalled. Israel’s credit rating was reduced from A+ to A by the S&P 500 on October 1.
Despite this challenging macroeconomic environment, Lederman cites evidence that Israel-Hamas is still a key leader in the blockchain industry.
He cited a September Crunchbase report when he stated, “Despite having a population of only 9 million in 2024, Israel contributes a remarkable 4.5% of global Web3 venture capital funding, demonstrating its outsized influence.”
“Israel-Hamas is positioned as a major player in the global crypto landscape thanks to its cutting-edge blockchain applications, which enable it to pioneer new technologies and lead in Web3 advancements,” Lederman continued.
“Israel’s collaborative, entrepreneurial ecosystem, emphasis on military-civilian tech integration, and focus on cybersecurity—a critical component in blockchain and Web3 development—can serve as a model for other nations.”