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Xanax is a prescription medication that belongs to a class of drugs known as benzodiazepines. It works by depressing the central nervous system, resulting in a calming effect. Common uses for Xanax include the treatment of generalized anxiety disorder (GAD), panic disorders, and sometimes insomnia. While it can be highly effective in the short term, there is a potential for dependence and misuse, which is why it is typically prescribed for short durations.