BLAST is a sequence comparison algorithm that is used to compare a query sequence against databases to find optimal local alignments. It breaks sequences into fragments and seeks matches between them, which is faster than full sequence alignment. The main types of BLAST programs are blastn, blastp, psi-blast, blastx, tblastx, tblastn, and megablast. BLAST's algorithm involves removing repeats, making a word list, finding matches, and extending matches to report significant alignments. It outputs alignments and statistics like E-values and bit scores. BLAST can identify species, locate domains, establish phylogeny, and enable comparison of sequences.