Gist is a tool introduced to enhance the paste functionality commonly used in workflows, addressing several limitations found in existing paste tools. It offers features such as versioning, SSL for private pastes, and the ability to fork pastes, with the added capability of integrating with Git for pushing and pulling pastes. Developed by Chris Wanstrath, also known as @defunkt, Gist aims to provide a more comprehensive and secure paste experience, with promises of further enhancements in the future.