ReFS is a new file system developed by Microsoft as an advancement to NTFS. It provides high data availability, prevents data corruption, and supports large volumes of storage up to petabytes in size. ReFS uses checksums and auto-repair to ensure data integrity and resilience. While it improves upon NTFS in areas like storage capacity and self-healing of data errors, ReFS lacks some features of NTFS like deduplication, compression, and hard links.