The IDEA encryption algorithm was designed in 1990 at ETH Zurich. It operates on 64-bit plaintext blocks, has a 128-bit key, and consists of 8 rounds of processing with 16-bit subkeys derived from the main key. The algorithm mixes XOR, addition modulo 216, and multiplication modulo 216 + 1 operations on its 16-bit subblocks at each round. IDEA is faster than DES in software implementations and remains secure against known cryptanalytic attacks due to its large key size and complex operations.