Docker allows users to package and run applications in lightweight containers. Containers are hardware and platform agnostic, making applications portable across computing environments from laptops to large servers. Docker utilizes Linux containers (LXC) which provide isolated mini operating systems within a host operating system without the overhead of virtual machines. Containers are more lightweight and efficient than virtual machines, allowing for faster deployment and scaling of applications. Docker makes containers reusable and provides a consistent environment for development and production.