A cloud-native app is designed to run in the cloud and take advantage of its properties, with a focus on agility, speed, and reduced issues for both the app and the organization. It typically consists of loosely-coupled and highly-cohesive microservices that communicate across the cloud to provide the app's functionality. Each microservice is designed to be temporary and can be changed internally without affecting other microservices. Cloud-native apps offer benefits such as faster development and release, customization and tailoring to specific needs, and improved agility and innovation for organizations. However, they also pose challenges like service discovery, security and observability, and the potential for isolated failures to cascade throughout the application if not handled properly.