Caching plays a crucial role in optimizing the performance and scalability of .NET microservices. It allows frequently accessed data to be stored in memory or fast storage mediums, reducing the need to repeatedly retrieve data from original sources. In this blog post, we will explore the concept of multi-layered caching in .NET microservices and its significance in building highly performant and scalable applications. Caching offers several benefits in modern .NET applications such as reduced latency, enhanced scalability, and improved resilience. To demonstrate the need for caching in .NET applications, a sample .NET API project using the Minimal API approach is created with the GenFu library for generating fake data. The project includes the definition of data models, repository and service classes, and the wiring up of dependencies. Through this setup, the impact of caching on latency and performance can be observed without directly implementing it.