Simon Willison gives an overview of OpenID, a decentralized single sign-on system. OpenID allows users to authenticate using a URL of their choice rather than having separate usernames and passwords for each site. It provides benefits like reducing the number of passwords users need to remember and allowing them to retain control over their credentials. The talk also addresses questions around how OpenID works, how to implement it on a website, privacy implications, and other organizations involved in the OpenID community.