EdgeDB 5 introduces a new branching concept, replacing traditional databases with "branches," which simplifies the workflow and opens up possibilities for tool development. The new branching system allows users to create, switch between, and manage branches seamlessly, eliminating the need for separate configurations or worrying about branch names leaking into codebases. This feature enables efficient local and cloud development, rapid preview and production cycles, and ensures consistency of schema changes through rebasing and merging capabilities.