Linux was developed as a free and open-source alternative to proprietary operating systems like DOS, Mac OS, and UNIX. It was started by Linus Torvalds in 1991 and has since grown tremendously. Linux uses a monolithic kernel design and provides features like multi-user access, multitasking, memory management, and device drivers. It has both command-line and graphical user interfaces. Files are a fundamental concept in Linux and access is controlled through permissions assigned to each file and directory.