Memcached is a general-purpose distributed memory caching system that speeds up database-driven websites by caching objects in RAM to reduce database queries. It provides a hash table distributed across multiple machines that stores data in RAM and purges older data using an LRU algorithm. Popular websites use Memcached as part of their technology stack. It can be implemented using PHP and runs on UNIX and Windows. The document discusses the differences between requests with and without Memcached, provides code samples for fetching data from a database versus Memcached, and outlines steps to install Memcached with WAMP.