A cloud-based database is a type of database that is hosted on remote servers and accessed over the internet. Instead of storing data on local servers or personal computers, users can store and manage their data in the cloud, which allows for greater flexibility and scalability. This means that businesses can easily increase their storage capacity as needed without investing in physical hardware. These databases are typically managed by third-party providers, such as Amazon Web Services or Google Cloud, which handle maintenance, security, and backups. Users can access their data from anywhere with an internet connection, making it convenient for remote work and collaboration.