Edge detection is used to identify points in a digital image where the image brightness changes sharply. The key steps are smoothing to reduce noise, enhancing edges through differentiation, thresholding to determine important edges, and localization to find edge positions. Common methods include using the first derivative to find gradients and zero-crossings of the second derivative. Operators like Prewitt and Sobel approximate derivatives with small pixel masks. Edge detection is useful for computer vision tasks by extracting important image features.