Restriction enzymes are nuclease enzymes that cleave DNA at specific recognition sites. There are three major classes of restriction endonucleases: Type I cut DNA approximately 1000 bp from the recognition site and require cofactors; Type II cut within the recognition site and only require magnesium; Type III recognize and methylate the same sequence but cut 24-26 bp away and require additional cofactors. Restriction enzymes are used in genetic engineering applications like gene cloning by cleaving DNA for insertion into plasmid vectors.