Neon is a single writer, multiple readers, and multi-tenant system that separates compute and storage for efficient database management. It runs in Kubernetes containers and uses a non-overwriting storage engine to simplify setup and maintenance. The separation of compute and storage allows for serverless functionality, independent scaling, and integration with cloud storage like Amazon S3 or Google Cloud Storage. Neon's storage engine is modeled as a key-value store and supports time-travel queries and branches, eliminating the need for traditional backups. It also employs non-overwriting storage to replace traditional backups and work seamlessly with older versions of data.