JDBC is used to connect Java applications to databases. It uses drivers specific to each database type. The key steps are: 1) loading the driver, 2) defining the connection URL, 3) establishing a connection, 4) creating statements to execute queries or updates, 5) processing result sets, and 6) closing connections. Prepared statements are useful for queries executed multiple times to avoid recompilation. Transactions allow grouping statements that must all succeed or fail together to maintain database consistency.