FTP is a standard protocol for transferring files between computers on the Internet. An FTP server runs FTP server software and listens on ports 20 and 21 to allow clients to connect and transfer files. FTP clients connect to FTP servers to upload and download files. There are two modes - active mode where the client initiates the data connection, and passive mode where the server initiates it to work better with firewalls. An FTP server is configured by installing vsftpd, enabling the service, editing configuration files, and adding users. FTP clients use commands like get, put, and mget/mput to download and upload files from/to the FTP server.