Docker provides an easy way to package, distribute, and run applications. It uses containers, which are like lightweight virtual machines that allow applications and their dependencies to run on any infrastructure regardless of the underlying operating system. Containers are more efficient than virtual machines because they share resources from the host operating system and only include the files required to run the application, unlike virtual machines which bundle operating systems. Common uses of Docker include building applications into containers and deploying them across development, testing, and production environments for consistent results.