Wagyu is a term denoting a Japanese beef cattle breed (wa means Japanese, and gyu means cow). This breed has a genetic predisposition to create marbling of fat on the inside of muscle tissue. Average steaks have a fat cap on the outside, but Wagyu cows metabolize the fat internally and the fat remains integrated within the muscle.
This rich and luscious beef cut almost dissolves as it hits the tongue, and it's recommended to keep the middle of the cut as raw as possible so that it remains extremely juicy and retains its sweet umami flavor. The meat can be cooked for a longer period of time without becoming dried out or too tough.
The fat melts at a lower temperature, so it can be tasted much sooner than in other types of beef. Japanese cattle breeders make sure that the animals live in a stress-free, open-air environment, as stress creates cortisol, which deteriorates the quality.