Parquet is a column-oriented data format that provides better performance than other formats like Avro for nested data through techniques like dictionary encoding and run-length encoding. The document discusses Parquet and compares it to other Hadoop data formats. It also provides an overview of Impala, a MPP SQL query engine that can be used to run queries against Parquet data faster than Hive. The use case discusses how Parquet can help deal with nested XML data when loaded into Hadoop.