The acronym FTP stands for File Transfer Protocol, a standard network protocol used for transferring files over a TCP/IP network. FTP enables users to upload and download files between a client and server in a structured manner. It supports both binary and ASCII file types and allows users to manage files remotely, including creating, deleting, and renaming files on servers. Though less common today due to security concerns, FTP is still utilized in various applications for its functionality in file sharing and management.