Memcached is a high-performance distributed memory object caching system aimed at speeding up dynamic web applications by reducing database load. It operates using a simple key/data storage model with various PHP client options and supports up to 1MB of data per item, utilizing eviction strategies based on least recently used (LRU) principles. However, it does not provide backup mechanisms or a way to visualize cached data, as it is intended solely as a caching solution rather than a data storage system.