A burndown chart shows the progress and performance of a team over time. Scrum Masters or project managers create these charts using tools such as Jira, Excel, or another spreadsheet tool. They are shared with the team and sometimes with managers or stakeholders.
For example, if a product backlog for a certain body of work began with 300 story points, and a team worked on it for 15 sprints, the burndown chart would start at 300 points and would show a line with a value that decreases by the velocity of each sprint. Some charts also include a designation of how many points have been completed towards the features required for a minimally viable product or a comparison of actual vs. estimated burndown.
This is a helpful tool for the team and their customers because it demonstrates how well a team is moving toward their goal and projects when milestones will be reached. Burndown charts also serve as indicators of team process issues, such as story carry-over and poor estimation.