Selenium is an open-source automated testing suite for web applications, consisting of four components: Selenium IDE, Selenium Remote Control (RC), WebDriver, and Selenium Grid. It was created by Jason Huggins in 2004 to automate web testing, with Selenium RC allowing the use of various programming languages for complex tests, while WebDriver offers direct communication with browsers. Selenium Grid facilitates parallel testing across different browsers and machines, enhancing efficiency compared to other tools like QTP.