Compilers can have a huge effect on software efficiency and performance by changing what user experiences are possible and reducing CPU and resource usage. They work by parsing code, generating machine-friendly representations, and emitting optimized machine code. As web programming grew in complexity, developers started building more efficient compilers for dynamic languages to preserve rapid development workflows while improving performance. There are various approaches to building compilers like interpreters, transpilers, using backends like LLVM, and fully custom solutions. The best approach depends on goals, constraints, and tradeoffs around control, performance, and development effort. Optimization focuses should include memory usage, caching, and runtime layout. Future areas may include database query compilation for real-time analytics on large datasets.