Hadoop is basically used for storage and processing of big data. It is an open source Apache software framework written in java. Hadoop is used by many Fortune 500 companies like Facebook and yahoo.
It works on the principle of divide and conquer that is it allows for the distributed processing of large data sets across clusters of computers using a simple programming model. Cluster is group of interconnected computers known as node that work on the same problem.
Hadoop cluster basically has master node which controls storage and processing system and slave node which stores the cluster data and also where data gets processed.
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Hadoop is developed by Apache Software Foundation which is an open source framework used to process large sets of data such as Big Data and for distributed storage.