Version control is a system that records changes to files over time, allowing users to recall specific file versions. Git is an open source version control system created by Linus Torvalds to track changes to files. In Git, the working directory contains files being edited, the staging area specifies changes to be committed, and the repository stores all file changes. Basic Git commands include git init to create a repository, git status to check the status, git add to add files, git commit to save changes with a message, and git log to view commits.