The 8086 microprocessor, introduced by Intel in 1978, is a 16-bit CPU that played a crucial role in the development of personal computers. It features a segmented memory architecture, allowing it to access up to 1 megabyte of memory, which was significant for its time. The 8086 was the first in the x86 family of processors, setting the foundation for future advancements in computing. The 8086 operates using a 16-bit data bus and can execute instructions in a pipelined manner, improving performance. It supports both real mode and protected mode, enabling multitasking and better memory management. Its design influenced many subsequent processors, making it a landmark in computer history.