Node.js is a cross-platform, open-source runtime environment created by Ryan Dahl in 2009, designed to execute web applications outside the browser and to handle multiple concurrent connections effectively. It is favored by major companies like Netflix and PayPal for its scalability, robustness, and supportive ecosystem, with key features including non-blocking I/O and Node Package Manager. Node.js is particularly popular for building IoT applications, real-time applications, and more, with significant improvements in performance and cost effectiveness noted by its users.