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What it really means is that Node.js is not a silver-bullet new platform that will dominate the web development world. Instead, it’s a platform that fills a particular need. And understanding this is absolutely essential. You definitely don’t want to use Node.js for CPU-intensive operations; in fact, using it for heavy computation will annul nearly all of its advantages. Where Node really shines is in building fast, scalable network applications, as it’s capable of handling a huge number of simultaneous connections with high throughput, which equates to high scalability.

How it works under-the-hood is pretty interesting. Compared to traditional web-serving techniques where each connection (request) spawns a new thread, taking up system RAM and eventually maxing-out at the amount of RAM available, Node.js operates on a single-thread, using non-blocking I/O calls, allowing it to support tens of thousands of concurrent connections held in the event loop.