Prokaryotes are single-celled organisms without membrane-bound organelles that include bacteria and archaea. They have distinct characteristics like DNA that is not enclosed in a nucleus, lack of histones, and cell sizes typically between 1-5 micrometers. Prokaryotes reproduce through binary fission and have various internal structures like ribosomes, cytoplasmic membrane, and nucleoid containing DNA. They also have external structures such as flagella, pili, and capsules that provide motility and attachment abilities. The cell wall and plasma membrane serve as protective barriers around the cell.