The RSA algorithm is a widely used public key cryptographic method for encryption, decryption, digital signatures, and authentication, developed by Rivest, Shamir, and Adleman. It operates using a pair of keys: a public key for encryption and a private key for decryption, relying on the difficulty of factoring large prime numbers for security. Key generation involves selecting two prime numbers, calculating their product and Euler's totient function, and determining the public and private keys for secure communication.