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Aside from whey protein powder, creatine monohydrate supplements are probably one of the most popular types of bodybuilding supplements on the market today - and for good reason! Creatine is one of only a handful of "proven" supplements - ones that can be backed up with real scientific research that shows that they actually work.
Creatine is actually present in everyones body in the form of creatine phosphate (CP). It is an "energy replenishing" chemical that is produced by the liver. The average person has about 120 grams of creatine phosphate in their body at any given time. Creatine is also found in beef and multiple species of fatty fish. Unfortunately these foods do not supply anywhere near the amount of creatine required to enhance performance and build muscle. This is why creatine needs to be consumed in supplementation form.
During weight training and other anaerobic workouts, your body uses it's stored ATP (adenosine triphosphate) as a source of energy for the muscles. When the ATP stores in your muscles are depleted, they are converted in to ADP (adenosine Diphosphate). ADP cannot be used as a source of fuel for the muscles, so the body uses it's stores of creatine phospate to convert the ADP back to ATP which can in turn be used by the muscles as energy again.