Apache Flume is a top-level project at the Apache Software Foundation, primarily used as a log aggregator to collect log data from various sources to a centralized Hadoop data store. It consists of five main components: events, sources, channels, sinks, and agents, which together facilitate the movement of data through an asynchronous process. Flume is capable of streaming data continuously and can operate across different geographic locations, enabling seamless data integration into Hadoop environments.