OFDM is a digital multi-carrier modulation technique that divides the available spectrum into multiple orthogonal subcarriers. It allows high spectral efficiency by spacing the carriers to maintain orthogonality even when their spectra overlap. The document provides an intuitive explanation of OFDM using analogies like a shower head vs faucet and multiple smaller trucks vs one large truck. It explains how OFDM provides resistance to interference by spreading data across orthogonal subcarriers rather than a single carrier. The key concept of orthogonality allows the subcarriers to overlap without interference by ensuring the area under one subcarrier's frequency multiplied by another is always zero.