Cyanobacteria, also known as blue-green algae, are photosynthetic prokaryotes that reproduce through binary fission and have specialized structures like hormogones, akinetes, and heterocysts that aid in reproduction and survival. They have a multilayer cell wall and lack organelles but contain pigments like chlorophyll and phycobilins within thylakoid membranes to perform photosynthesis. Cyanobacteria inhabit various environments like freshwater, marine water, soil and hot springs.