DRAM (Dynamic Random Access Memory) is a type of computer memory used to temporarily store data that the processor needs while running programs. It is called 'dynamic' because it must be constantly refreshed with electrical charges to retain information. DRAM is the main memory in most computers and devices, holding active data such as open files, running applications, and sensitive information like passwords. When a device is powered off, all data in DRAM is lost. Its speed and capacity are crucial for overall system performance, making it a key component in modern computing.