Calico is an open-source project that provides a layer 3 network implementation for scalable datacenter deployments using minimal packet encapsulation for better resource usage and network simplicity. It is highly scalable, secure, and simple compared to traditional overlays. Calico integrates with major orchestrators and uses standard APIs and protocols to provide a seamless experience for developers and operators while supporting communication with existing network switches and routers. It consists of components like Felix, orchestrator plugins, etcd, and BIRD that run on endpoints and distribute routing information.