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Metadata plays a crucial role in data engineering since it provides context and structure to data. It helps to define the characteristics of the data, such as its format, origin, and relationships with other data, allowing data engineers and users to understand its meaning and purpose more thoroughly. By describing attributes like who collected the data, when it was collected, and how it should be interpreted, metadata enables better data governance, ensuring that data is accurate, reliable, and usable.

Having comprehensive metadata facilitates data discovery and management, as users can quickly determine the appropriate data sets for their analysis or business needs. This context is essential for tasks like data integration, data lineage tracking, and compliance with data regulations, ultimately leading to more informed decision-making within an organization. Therefore, without robust metadata, the utilization of data can be inefficient and potential misinterpretations or errors can arise.