Plasmids are small, circular pieces of DNA found in bacteria that are separate from the main bacterial chromosome. They often contain genes for traits like drug resistance and can be transmitted between bacteria. Plasmids are used in genetic engineering and recombinant DNA techniques to transfer genes between organisms. Their discovery in the early 20th century expanded understanding of heredity, and they continue to be important tools for cloning and altering organisms through recombinant DNA. Different types of plasmids carry various traits or help with integration into chromosomes.