The text discusses the advantages and mechanics of using prepared statements in N1QL, particularly focusing on how they can enhance query performance in Couchbase by reducing the overhead associated with parsing and executing frequently repeated queries. By setting the adhoc property to false, users can instruct the SDK to cache a compressed execution plan after the first execution, enabling subsequent queries to bypass initial parsing and analysis steps and proceed directly to execution. This process utilizes an LRU cache to manage memory efficiently by discarding the oldest cached queries once the cache reaches 5000 entries. While prepared statements can significantly improve performance, especially for repeated queries with different parameters, they are not suited for highly adhoc applications due to the initial overhead of preparing the execution plan. Additionally, they are specific to each SDK instance, and care must be taken with topology changes that could invalidate cached plans. For further exploration of Couchbase's functionalities, the text suggests consulting the Developer Guide and the GitHub repository.