What is database normalization and why is it important?

Normalization is the process of organizing a database to reduce data redundancy and improve data integrity. It divides large tables into smaller related tables linked by relationships. Benefits: eliminates redundant data (saves storage), prevents update anomalies (inconsistent data), enforces data dependencies logically. Normal forms (1NF through 5NF) define progressive levels of normalization. Most databases aim for 3NF or BCNF as a practical balance.