What is the purpose of blockchain technology everfi? While the word ‘blockchain technology’ may seem a little out of place, in reality, it is a form of record keeping. It is like a huge book in which everyone records their possessions and transactions, but no person designs the book.
Everfi, for example, is a platform that provides people with knowledge on the use of technology and has been instrumental in helping learners and individuals imagine what blockchain is. Prior to that, I found it hard to understand how it works, but after diving into Everfi, I realized what a game-changer it is.
What is Blockchain?
Transactions are registered over numerous computers so that not all information can be reversed, which is what blockchain technology is. Let me explain this simply. And this ‘Or ‘Blockchain’ above, What do you understand by this term?
Blockchain in Simple Terms
Consider this concerning one of the fun activities you and your pals are engaged in trading items, such as instruments or video games, that you own.
In this case, however, only one person does not possess the diary, as each person does, and any time someone puts something in the diary, everyone else’s diary automatically gets updated.
In this way, one person cannot change the diary without others getting attention. This Operating principle is somewhat analogous, but instead of friends, there are millions of computers worldwide.
Decentralization: Why It’s Important
Conventional systems, such as banks, often have a one-stop middleman who verifies and stores the transaction information.
For example, when you use your card to make a purchase, the bank shows that you have funds to facilitate that kind of purchase—a credit card purchase.
There is no need for such an intermediary in the case of a bank. Instead, it distributes the authority to authenticate transactions among the users instead of concentrating the power in one institution, making the whole system more transparent and less risky.
How Does Blockchain Work?
After understanding the blockchain concept as a common notebook, I wondered in detail how it really works.
Step-by-Step Explanation of Blockchain Transactions
- Transaction Creation: Any actionable event, such as transferring cryptocurrency from one individual to another, is treated as a digital block of information that must be completed.
- Verification by Nodes: The nodes, or computers in the network, confirm the existence of the legal transaction. This is where decentralization kicks in because no single node controls the process.
- Block Added to Chain: To verify that the transaction has not been altered, the data added to the block will also include records of transactions on that old block. This is due to the unique nature of the records in a particular block, which consists of a time and date and a coloured hash appropriately termed.
- Complete Transparency: Every node in the network has added new information to its records. All of them now have an updated and correct copy of the transaction record.
Why Blockchain is Trustworthy
The main reason for my argument is the transparency and the immutability of the blockchain.
This explains why it would be hard to hack or alter the information in the blockchain: Everyone can see each transaction, and no one can go back and change a previous transaction without changing every other block that comes after it.
I imagine that this is one of the most favourable factors, especially when considering how traditional systems allow such errors or fraud to go undetected.
Benefits of Blockchain Technology
Whenever I hear of blockchain technology, I can single out several benefits. We will now analyze the most important benefits that make blockchain worth using.
1. Security
Only a few methods can come close to the blockchain regarding information hosting. Each block of a specific day is always encoded, so no intruder can change data. Such blockchains are connected to other blocks, so a chain of blocks is not an easy target for alteration, and any person in the network can see if one has been corrupted.
2. Transparency
Every given transaction on the blockchain, which records the chain’s status at a particular time, can be viewed by all the parties working on the system. In that case, more responsibility is taken, and more people tend to act responsibly because everyone can access the proceedings.
3. Privacy
At the same time, blockchain offers privacy.
Transactions are available, but only the generalities are available. The users’ identities are hidden by using names that cannot be traced to the users, such as ‘id’, which does not physically relate to the individual.
I appreciate one thing about blockchain: it allows the disclosure of some information while keeping some other information private.
4. Efficiency
Conventional systems usually require the participation of a third party who authenticates and facilitates trades, which causes some lag time and additional expenses.
Blockchain eliminates the need for a middleman, facilitating faster and cheaper processes. To me, that is perhaps one of the most practical benefits, especially in terms of cross-border payments.
Blockchain and Everfi’s Educational Role
One of the issues with blockchain is that it is not very self-explanatory. Well, that is where Everfi steps in.
Everfi’s Role in Teaching Blockchain
The target audience of everfi is most especially the students, there is also a rather very important aspect that Everfi targets, and that is trying to deliver the complicated concept of blockchain in an easy way to everyone. While I might not be a techie, thanks to the lessons by Everfi.
The Importance of Education
From my point of view, education is the right strategy for ensuring that many people understand and embrace blockchain technology. The reason most people may not want to adopt this technology is rather simple: they do not understand it.
Use Cases of Blockchain
Cryptocurrency is not the only use of blockchain technology; its use is extensive and increasing. In this post, I’ll highlight some of the coolest real-life applications of blockchain technology.
1. Finance: Cryptocurrencies
The simplest application of blockchain technology is the creation of cryptocurrencies—Bitcoin and Ethereum are among the most well-known of these assets.
These are digital currencies based on blockchain technology that operate without the scope of a bank via P2P transactions. I find this interesting because it creates new possibilities in the financial systems, especially among the unbanked.
2. Healthcare: Securing Patient Data
Similarly, we can use blockchain technology to protect patients’ records, especially in the health sector.
Since such data is stored in tight, secure blocks, no unauthorized personnel can change the information unless permission is obtained.
Doing this will change how we treat patients and record their medical histories by making them the rightful owners of their primary health information.
3. Supply Chain Transparency
Another widely adopted application of blockchain technology is in the supply chain network.
Through the use of blockchain, firms can monitor an item’s progress from the factory to the final dispense stage. This will most likely enhance customers’ confidence in the brand.
For example, the potency of blockchain is knowing exactly the source of your food or clothing item with just a scan.
Future of Blockchain Technology
Looking forward to the future and trying to predict yet unimagined ways the industries will be transformed, one concludes that blockchain technology is here to stay and evolves in unimagined ways even today.
Ongoing Innovations
Self-enforcement contracts, commonly known as smart contracts, are agreements whose terms are inscribed in the computer code but are only one step.
These new features could radically change how the legal, property and banking systems work. I’m interested in what else the evolution of the blockchain can bring in the future.
Challenges Ahead
There are challenges to the advantages that blockchain technology already points to.
For example, problems like scalability and energy consumption must be solved before blockchain can be implemented in the broader context. However, I believe these obstacles are reasons for even more considerable ingenuity.
Conclusion
One big-picture question about blockchain technology: Why is there a need for secure and decentralized transacting?
Cryptocurrencies, the protection of medical records, supply chain advancement, and blockchain are there and there. Blockchain is changing everything, including how we receive trust and transparency in the Internet age.
Still, such an opportunity presents itself due to Everfi and its lessons on education regarding blockchain.
As more of us come to appreciate what blockchain means, we should all then proceed to learn more about how best to use it to improve our way of life and various sectors.
It is unarguable that blockchain has the potential for systematic improvement in many aspects, and it is interesting to think about how it will develop further.