(1) The Nerves project aims to build small to mid-sized embedded systems using Erlang/OTP by creating a minimal embedded Linux environment that is cross-compiled to only include necessary libraries. (2) It uses Buildroot to customize a minimal init process and build OTP releases that can fully update systems. (3) The workflow involves developing OTP applications, cross-compiling binaries, generating an Erlang/OTP release, and burning the final system image to an SD card or updating firmware.