Conan is a decentralized package manager for C and C++ that handles both source code and pre-compiled binaries. It addresses issues with building dependencies from source by allowing developers to define packages through recipes that specify dependencies and build instructions. Conan packages are cached locally and identified by name, version, and user/channel to allow isolation of builds. The Conan community contributes package recipes through open source projects on GitHub like the Conan Center and Bincrafters organization.