Blockchain is a method for storing information that makes it difficult or impossible to change, hack, or cheat the system. It involves a network of computers called nodes that maintain an identical history of transactions. Whenever a transaction occurs, it is validated by all nodes and added to the transaction history if approved. Blockchain technology is not only used for Bitcoin but Bitcoin uses it to function as a digital currency. Key components of a blockchain include hashes, the mempool of pending transactions, merkle roots to validate transactions efficiently, nonces as random numbers, and proof of work puzzles to validate transactions.