A USB flash drive is a portable storage device that allows users to store and transfer files between computers. It uses flash memory instead of a magnetic disk, making it smaller than a floppy disk or CD. Early flash drives had limited storage capacities and transfer speeds, but technology has improved allowing newer drives to store more data and transfer faster. Flash drives are durable, portable, and support a wide range of operating systems. However, their small size also means they can be easily misplaced, and damaged drives cannot be repaired like scratched CDs.