EventMachine allows Ruby programs to handle many concurrent connections without blocking or threads. It uses an asynchronous model where callbacks are invoked in response to I/O events like incoming connections or data. EventMachine provides a high performance non-blocking TCP server that handles all I/O with callbacks rather than blocking. It can be used to build scalable I/O intensive applications like email servers that handle thousands of concurrent connections in a single Ruby process. The key is to never block the EventMachine reactor loop.