Euclid's algorithm is a method for finding the greatest common divisor (GCD) of two numbers. It works by taking the remainder of dividing the larger number by the smaller number at each step, and repeating this process until the remainder is zero. The last non-zero remainder is the GCD. The key steps are: (1) Take the remainder of dividing the two input numbers; (2) Set the smaller number equal to the remainder, and repeat from step 1 until the remainder is zero.