"AdSense is an ad serving application run by Google Inc. Website owners can enroll in this program to enable text, image, and video advertisements" from wiki.
AdSense is the Google program where you can host pay-per-click ads on your Website. When someone clicks an ad, you earn money. AdSense also allows you to provide Google search to your site users, while earning money by displaying Google ads on the search results pages.
just don't try to cheat on them in anyway and you will be fine i.e. don't click your ads, don't use it on prohibited niches like(porn, gambling,...), and don't tell the visitors to click on them
What's the use of Adsense? To earn money, simple as. Most of Googles revenue is made via Adwords, Adwords is where all the advertisers advertise their products/services. Adsense is then the program that the publishers use to make money, Adsense ads is populated via Adwords advertiser ads that they have set up.
If you have a web site or blog site and if you want to earn some monye out of it, then enroll with Adsense and place their ads on your site, wait till payments comes.
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