Neo4j is a graph database that uses the Cypher query language to store and retrieve data. Users can create nodes (representing individuals or entities) and relationships between them, allowing for flexible querying and traversing of complex data structures. The database supports basic operations such as creating, reading, updating, and deleting data, and also provides features like automatic indexing and explicit transactions. With the release of Neo4j 1.8, users can now enjoy improved performance, including zero-downtime rolling upgrades, streamed responses to REST API requests, bi-directional traversals, and support for graph data and auto-indexes in Cypher. The new version is available for immediate download on Neo4j.org and can be discussed on various online platforms, including Stack Overflow, the Neo4j Google Group, and GraphConnect.