**Understanding Blockchain Technology**

Blockchain is a decentralized digital ledger technology that securely records transactions across multiple computers. This innovation allows participants to verify and audit transactions independently, reducing the need for intermediaries like banks.

At its core, a blockchain consists of a chain of blocks, each containing a list of transactions. These blocks are linked and secured using cryptographic hashes, ensuring that any alteration in one block would require changes to all subsequent blocks, thus enhancing security.

**Key Features:**

1. **Decentralization:** Unlike traditional databases, blockchain operates on a peer-to-peer network, eliminating a single point of failure and enhancing resilience.

2. **Transparency:** Transactions are visible to all participants in the network, promoting trust and accountability.

3. **Immutability:** Once recorded, data on the blockchain is nearly impossible to alter, which helps prevent fraud.

4. **Smart Contracts:** These are self-executing contracts with the terms directly written into code, enabling automated transactions and reducing the need for intermediaries.

**Applications:**

Blockchain has far-reaching implications beyond cryptocurrencies like Bitcoin. Industries such as supply chain management, healthcare, finance, and real estate are exploring its potential for improving efficiency, security, and transparency.

**Challenges:**

Despite its promise, blockchain faces hurdles such as scalability, energy consumption, regulatory uncertainties, and integration with existing systems.

In summary, blockchain technology represents a paradigm shift in how transactions are conducted and recorded, offering enhanced security, transparency, and efficiency across various sectors. Its continued evolution could significantly reshape the digital landscape.