Figma is a web-based interface design tool used for creating user interfaces, prototypes, and designs for websites, apps, and other digital products. It is a collaborative tool that allows teams to work together in real-time on a single design file, making it easier to iterate on designs and get feedback from stakeholders. Figma works by allowing users to create and edit design elements using its intuitive interface. Users can create vector shapes, add text and images, and apply styles to elements.