Teradata is a massively parallel processing (MPP) relational database management system known for its ability to handle large datasets. It provides scalability, parallel processing, and can execute complex queries involving up to 256 joins. Teradata uses a scalable architecture with nodes that contain parsing engines, access module processors, and virtual processors to distribute data and query processing across hardware components for high performance. Data is stored across access module processors and retrieved in parallel to support analytics on large datasets.