Grover's algorithm is a quantum computing algorithm designed to search through an unsorted database or list more efficiently than classical algorithms. It can find a specific item in a database of size N in roughly √N steps, compared to the N steps required by classical search methods. This speedup is significant, especially for large datasets. The algorithm works by using quantum superposition and interference to amplify the probability of the correct answer while reducing the probabilities of incorrect ones. It is particularly useful in applications like cryptography and optimization, showcasing the potential advantages of quantum computing over traditional methods.