The RSA algorithm, developed by Rivest, Shamir, and Adleman in 1977, is a widely used public-key encryption method that relies on exponentiation in a finite field and the difficulty of factoring large integers for security. In RSA, users generate a public/private key pair based on randomly selected large prime numbers, and encryption/decryption involves modular exponentiation where the sender uses a public key to encrypt a message, and the recipient uses a private key to decrypt it. RSA's effectiveness relies on maintaining the secrecy of the prime factors used in the modulus and the mathematical principles outlined in Euler's theorem.