What type of caching mechanism is utilized by Sitecore to improve performance?

Sitecore utilizes output caching to enhance performance by storing rendered HTML output of pages or components. When a page is requested, the cached output can be quickly delivered to the user without the need to regenerate the content, significantly reducing response time and server load. This caching mechanism is particularly effective for content that does not change frequently, allowing for faster retrieval and improved user experience.

Additionally, output caching can be finely tuned with various settings, such as cache duration and dependencies, allowing developers to control how and when the cached content is refreshed. This optimization is crucial in a content management system like Sitecore, where delivering content quickly and efficiently is vital for both user satisfaction and system performance.