A multiplexer or demultiplexer enables you to expand the in-and outputs on your Arduino board.
The 4051 is an 8 channel analog multiplexer / demultiplexer:
Futhermore, the 4051 is able to work with analog values; in the case of the Arduino, you are able to use the analog inputs with a voltage between 0-5V and route them to an Analog-In Pin on your Arduino.