Blockchain technology ensures transparency by providing a public and immutable ledger of transactions accessible to all participants in the network. Each transaction is recorded in a block that is linked chronologically to previous ones, creating a chain that is verifiable and resistant to tampering. This decentralized structure allows any participant to audit the history of transactions, promoting trust amongst users. The transparency inherent in blockchain technology is crucial for applications in areas such as finance, supply chain management, and regulatory compliance, where accountability and traceability are paramount.