Bioinformatics involves using computational tools to analyze large datasets from molecular biology, including DNA, RNA, proteins, and genetic information. It combines biology, computer science, and information technology. Key applications include processing and visualizing data from genomics, transcriptomics, and proteomics projects. Challenges include educating biologists in computational tools, developing databases to store biological data, and creating efficient search engines for complex databases. The document provides examples of molecular data like DNA sequences, protein sequences, and describes genomic and proteomic analysis.