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Nodejs is evented input/output for JavaScript. It makes it easier to build network programs that scale. The node program runs the JavaScript. It sleeps until the operating system alerts it that it has work to do. The node uses a small amount of memory per connection. There is not a new thread created for every connection.
This is similar to the Ruby Event Machine or Python's Twisted. I am planning to learn JavaScript from a college class in the upcoming semester. Perhaps after that I can appreciate what nodejs has to offer.