This document discusses consistent hashing, an algorithm that provides better load balancing when keys are hashed and distributed across machines in a distributed system. It describes some limitations of traditional hashing algorithms, like all keys being relocated when a machine is added or removed. Consistent hashing assigns keys to machines while trying to minimize movement on machine changes. It works by hashing both keys and machines and allocating keys clockwise on a hash ring from their hash position. This allows easy horizontal scalability and better performance by clustering similar keys.