Blockchain technology is built on the principles of a decentralized ledger and consensus mechanisms. It is a shared and synchronized data structure that can be accessed and modified by multiple participants over a peer-to-peer network. The technology relies on cryptographic hashing to link each new data block to previous blocks, ensuring transaction immutability. Other characteristics of blockchain technology include distributed ledger technology, consensus mechanisms such as proof-of-work and proof-of-stake, and the distinction between public and private blockchain networks.