What is caching? How does it work? Why is it important?

Caching is fast access to frequently used resources which are computationally expensive or IO intensive and do not change often. There can be several layers of cache that can start from CPU caches to distributed cache systems. Common ones are in memory caching and distributed caching. Caches are typically data structures that contains some data, such as a hashtable or dictionary. However, any data structure can provide caching capabilities, like set, sorted set, sorted dictionary etc. While, caching is used in many applications, they can create subtle bugs if not implemented correctly or used correctly. For example,cache invalidation, expiration or updating is usually quite challenging and hard.