Coral reefs are diverse underwater ecosystems held together by calcium carbonate structures secreted by corals. Coral reefs are built by colonies of tiny animals found in marine waters that contain few nutrients. Most coral reefs are built from stony corals, which in turn consist of polyps that cluster in groups. The polyps belong to a group of animals known as Cnidaria, which also includes sea anemones and jellyfish. Unlike sea anemones, corals secrete hard carbonate exoskeletons which support and protect the coral polyps. Most reefs grow best in warm, shallow, clear, sunny and agitated waters.
Often called "rainforests of the sea", shallow coral reefs form some of the most diverse ecosystems on Earth. They occupy less than 0.1% of the world's ocean surface, about half the area of France, yet they provide a home for at least 25% of all marine species, including fish, mollusks, worms, crustaceans, echinoderms, sponges, tunicates and other cnidarians. Paradoxically, coral reefs flourish even though they are surrounded by ocean waters that provide few nutrients. They are most commonly found at shallow depths in tropical waters, but deep water and cold water corals also exist on smaller scales in other areas.
Coral reefs deliver ecosystem services to tourism, fisheries and shoreline protection. The annual global economic value of coral reefs is estimated between US$29.8-375 billion. However, coral reefs are fragile ecosystems, partly because they are very sensitive to water temperature. They are under threat from climate change, oceanic acidification, blast fishing, cyanide fishing for aquarium fish, sunscreen use, overuse of reef resources, and harmful land-use practices, including urban and agricultural runoff and water pollution, which can harm reefs by encouraging excess algal growth.
Explanation from: https://en.wikipedia.org/wiki/Coral_reef