RRDtool is a database designed for storing and displaying time-series data such as network bandwidth, temperatures, or stock prices. It uses approximations and controlled memory loss to store data efficiently while allowing for quick setup and use with included graphics capabilities. The document discusses various performance improvements that can be made to RRDtool such as disk striping, tmpfs storage, optimizing buffer cache usage through fadvise and madvise calls, and implementing an RRD cache daemon to batch updates. New features in recent versions include improved graphics, integration with other databases, predictive functions, and remote graphing through the cache daemon.