Blockchain offers several advantages over traditional databases, primarily through its decentralized structure, eliminating the need for a central authority. This feature enhances security and transparency by ensuring that all transactions are recorded on a public ledger that is immutable and verifiable by participants. Additionally, blockchain enables smart contracts, which are self-executing agreements with terms directly written into code, ensuring automatic enforcement. These unique features make blockchain particularly suitable for applications in finance, supply chain management, and identity verification, fostering greater trust among users.