FTP (File Transfer Protocol) is a standard network protocol used to transfer files between computers over a TCP/IP network like the Internet. It uses separate connections for control commands and data transfer. FTP servers allow users to upload, download, and organize files. Setting up an FTP server involves installing FTP server software on a computer with a static IP address or domain name. This allows other users to access files by logging in anonymously or with a provided username and password. FTP clients are programs that users can install to connect to FTP servers and transfer files in either direction with drag-and-drop or other simple interfaces.