Node.js is an open-source JavaScript runtime environment that allows for building server-side web applications. It uses the Google V8 JavaScript engine to interpret JavaScript code and an event-driven, non-blocking I/O model, making it lightweight and efficient. The document then discusses advantages of Node.js like using JavaScript on both the server and browser, reducing mismatches. It provides an example of creating a simple chat service using Node.js, Socket.io and JQuery and discusses important Socket.io functions like emitting and listening for data.