Linux was created in 1991 by Linus Torvalds as an open-source alternative to the proprietary Minix operating system. Some key features of Linux include its portability across different hardware, its open-source and collaborative development model, its ability to support multiple users and programs running simultaneously, its hierarchical file system, and its built-in security features like password protection. Linux also provides advantages over other operating systems like Windows by being free, allowing for custom modifications, and providing highly secure and robust servers.