'JSON' stands for JavaScript Object Notation, a lightweight data interchange format that is easy for humans to read and write and easy for machines to parse and generate. It is widely used for transmitting data between a server and a web application, facilitating the exchange of information in a structured format. JSON's simplicity and versatility make it a popular choice for APIs and web services, as it supports various data types, including objects, arrays, strings, numbers, and booleans. Its ability to represent complex data structures in a clear format makes it an essential tool for modern web development and data management.