Blockchain is a distributed ledger that records transactions across a network of computers. It allows digital representation of any asset to be tracked and traded, reducing risk and costs. Decentralization matters because it avoids single points of failure, control by any one entity, and political pressure. Cryptocurrencies like Bitcoin were early applications of blockchain, while other current uses include banking, supply chain management, and healthcare records. Issues around scalability, privacy, and environmental impact remain tensions as the technology develops further.