Linux is a free and open-source operating system that was created in 1991 by Linus Torvalds. It provides a multi-user environment and can run on various platforms including PCs and supercomputers. Before Linux, DOS dominated the PC market but was limited, while UNIX was more advanced but expensive to obtain and run. Linux addressed this need for a free UNIX-like system and has grown significantly in popularity worldwide with over 29 million users. It offers advantages such as speed, cost, and ability for users to improve and adapt the software.