ASP.NET Identity is a claims-based system for managing users, authentication, and authorization in web applications. It supports locally authenticated users stored in a database as well as OAuth and social login providers. The architecture of ASP.NET Identity consists of managers that handle authentication tasks and stores that interact with the data layer. Customizations can be made to the user and role stores as well as the database schema. Two-factor authentication and secure implementation of features are recommended for identity in web applications.