TL;DR
Breadcrumbs are the 'Home > Category > Page' trail that shows where you are on a site. They improve UX, help Google understand your site structure, and can appear in SERP results to replace the URL — making your listing more descriptive.
Key Points
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Google can display breadcrumb trails in search results instead of the page URL, making results more readable and clickable
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Breadcrumbs require BreadcrumbList structured data ([[schema-markup|schema markup]]) to appear in Google SERP rich results
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Breadcrumb links are a form of [[internal-linking|internal linking]] — they add navigational links from every page back up through the hierarchy
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Google uses breadcrumb structure as a signal for understanding site architecture and categorizing pages