The NAND gate is a universal gate that can be used to build all basic logic gates. It is constructed by connecting a NOT gate to the output of an AND gate. In its truth table, the NAND gate output is 0 only when both inputs are 1, and 1 for all other combinations. Circuits for AND, OR, NOT, NOR, half adder, and full adder can all be made using only NAND gates, demonstrating its universal properties for building digital logic functions.