FTP (File Transfer Protocol) allows users to transfer files between two hosts on the internet. It has two types of connections - a control connection that transfers commands and a data connection that transfers files. FTP clients allow users to connect to remote hosts, upload and download files using FTP commands. Some advantages are speed, efficiency, security, and ability to transfer files back and forth. Disadvantages include lack of encryption on some providers, file size limits of 2GB, clear text passwords, and incompatibility with some systems.