Citus 5.0 extends PostgreSQL by adding distributed database capabilities through sharding and parallel query execution, making it suitable for high scalability and real-time querying. It utilizes extension APIs, allowing for greater flexibility in handling various workloads, and emphasizes the importance of transforming computations for effective distribution. As an open-source project, Citus targets real-time data ingestion and analytics, positioning itself as a complementary solution rather than a replacement for traditional data warehouses.