Riverpod is a reactive state management and dependency injection library for Flutter. It's the successor to Provider, offering a more powerful and type-safe approach to managing state and dependencies. Riverpod uses the concept of providers: immutable objects that manage state and can depend on other providers. It excels at handling async operations, testing, and complex dependency graphs. Developers use Riverpod to structure Flutter apps with clear separation of concerns, easier testing, and better performance through precise reactivity.