Project Ara is a modular smartphone platform that operates on Android and allows users to customize their devices by swapping individual components like the camera or battery. It utilizes a fast communication protocol called Unipro for efficient module interaction, along with electropermanent magnets for secure attachment without additional power drain. The phone is designed to be cost-effective, making repairs and upgrades easier, with an initial offering of 11 modules set to expand to 30 in the future.