What do you understand by the term 'auto-protolysis' of water? What is its significance?


Auto-protolysis means self ionisation of water.
H2O(l)Acid1+H2O(l)Base2H3O+Acid2+OH-(aq)Base1
Due to auto-protolysis, water is amphoteric in nature. It reacts with both acids and bases. e.g., 
H2O(l)Acid1+NH3(aq)Base2NH4+(aq)Acid2+OH-(aq)Base1
H2O(l)Base1+H2S(aq)Acid2H3O+(aq)Acid1+HS-(aq)Base2