TCP Tahoe is a version of the Transmission Control Protocol that helps manage data transmission over networks. It uses a congestion control mechanism to prevent network overload by adjusting the rate of data sent based on network conditions. When packet loss is detected, TCP Tahoe reduces the transmission rate significantly to alleviate congestion. The key features of TCP Tahoe include the use of slow start, congestion avoidance, and fast retransmit. In the slow start phase, the transmission rate increases exponentially until packet loss occurs. Once loss is detected, TCP Tahoe resets the congestion window, leading to a more cautious approach in sending data.