The LED cube project uses an Arduino Nano controller to automatically light up 64 blue LEDs arranged in a 4x4x4 cube formation. The project aims to learn about the Arduino Nano and create an interactive LED cube like those seen online. Key components include the Arduino Nano, blue LEDs, resistors, transistors, a PCB board and headers. The Arduino controls the LEDs by addressing their positives on 4 layers and negatives on 16 columns. Advantages of LEDs are their speed, color options, lack of toxins, brightness control and longevity. Disadvantages include lower efficiency and need for more power than normal diodes. Coding is needed for automatic control of lighting patterns.