Node.js is an open-source JavaScript runtime environment built on Chrome's V8 engine, enabling server-side applications to use JavaScript. Its advantages include asynchronous and event-driven I/O for high efficiency, scalability, and a single language for both frontend and backend development, while its ecosystem includes modules like Express for web server management and MongoDB for data storage. The document also details a simple installation guide for Node.js on Windows and showcases its essential components and functionalities in building web applications.