Active Directory (AD) is a directory service integrated into Windows 2000 that centralizes network resource management, enhances security, and enables efficient user and resource management across multiple domains and trees in a hierarchical structure. It uses a multi-master replication model to maintain data consistency and supports various authentication protocols to strengthen network security. AD's architecture consists of logical and physical structures, including domains, organizational units, trees, and forests, which facilitate administrative tasks and user access control throughout a distributed network environment.