The Bellman-Ford algorithm, developed by Richard Bellman, is a dynamic programming technique used to find the shortest paths from a single source vertex to all other vertices in a weighted graph, capable of handling negative weights and detecting negative cycles. The algorithm operates through edge relaxation and iterates V-1 times, followed by a check for negative cycles. Its applications are critical in scenarios such as logistics for determining optimal delivery paths, though it is considered slow for larger graphs due to its high time complexity.