Mule is an open-source ESB that uses a Staged Event-Driven Architecture (SEDA) to decompose applications into stages connected by queues. This avoids overhead from thread-based concurrency and decouples event and thread scheduling from application logic. Mule can transport data between different endpoints like files, queues, and memory in a flexible way. XML pipelines in Mule can perform operations like validation, transformation, splitting, and merging on XML files as they flow through approval processes.