The significance of blockchain in financial transactions lies in its ability to provide a decentralized and secure method for recording transactions. By utilizing a transparent ledger, blockchain enhances trust among parties by ensuring data integrity and preventing fraud. Each transaction is encrypted and linked to previous entries, making it nearly impossible to alter past records without consensus from the network. This innovation reduces reliance on traditional intermediaries, lowering costs and transaction times, while enabling faster payments and improved efficiency. Overall, blockchain technology is poised to revolutionize how financial transactions are conducted globally.