Memcached is an in-memory key-value store used to improve performance by caching data and database queries. It uses a simple get/set interface and stores data in memory for low latency access. Memcached is commonly used to cache data from dynamic database-driven websites to reduce the load on databases and improve response time. It provides basic caching functions but has no persistence or security features. Improving areas include networking, parallel access, data structures and memory management.