The Quine-McCluskey algorithm is a method used in digital logic design to simplify boolean functions. It systematically reduces complex boolean expressions into simpler forms, making it easier to implement in electronic circuits. This algorithm is particularly useful for functions with many variables, where traditional methods like Karnaugh maps become cumbersome. The process involves two main steps: first, generating a list of all possible minterms, and then combining them to find prime implicants. Finally, a prime implicant chart is created to select the essential prime implicants, ensuring the simplest representation of the boolean function while maintaining its original output.