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Supabase is an open-source backend-as-a-service (BaaS) platform that simplifies application development. It utilizes PostgreSQL as its core database engine, providing developers with a hosted version of PostgreSQL to avoid managing their infrastructure. Supabase offers a real-time subscription API, enabling real-time functionality such as live chat and notifications. It also includes authentication and authorization services with support for various providers. Being open-source, Supabase allows developers to modify and extend its source code, fostering collaboration and customization to meet specific requirements.