The International Data Encryption Algorithm (IDEA) is a block cipher that operates on 64-bit blocks using a 128-bit key to provide high-level security through complex transformations. It generates 52 16-bit key sub-blocks from a 128-bit key and employs a series of identical encryption rounds followed by an output transformation, making it suitable for various applications such as financial services and data encryption. IDEA is known for its robust security and efficiency in both hardware and software implementations.