Docker is an open platform for building and running distributed applications across multiple isolated containers. It allows encapsulating applications into lightweight executable packages called containers that include all necessary dependencies. The document discusses Docker's architecture, components, image layers, repositories, building images using Dockerfiles, and challenges in implementing Docker in real-world systems due to limitations in separating runtime configuration and data. Competition in the container space from projects like Rocket, Project Atomic, and Vagga is also discussed.