Neon is a fully managed serverless Postgres that introduces a new architecture to take advantage of modern cloud infrastructure, separating storage and compute resources, allowing for more efficient scaling and improved developer productivity. To use Neon effectively, it's essential to understand its object hierarchy, which includes Projects, branches, and compute endpoints. A Project serves as a container for resources, while a Branch represents the Postgres cluster and can be created from a current or past state, isolated from its parent. Compute Endpoints provide read-write access to databases in branches and can be configured for autoscaling, enabling cost-effective scaling based on workload demands.