Node.js allows JavaScript to be run on the server side using the Google Chrome V8 JavaScript engine. It utilizes non-blocking I/O and event looping to remain lightweight and efficient compared to traditional threaded models. Node.js exposes APIs for common non-blocking operations like file systems, networking, and cryptography that prevent blocking and allow highly scalable servers to be built with a single thread. Many large companies use Node.js in production for building scalable web servers and APIs.