The Strapi project can be created using a command line input `npx create-strapi-app my-project` and is an open-source headless content management system that allows developers to use their preferred tools and frameworks during development. Authentication in Strapi can be implemented using Auth0, which provides an adaptable authentication and authorization platform that takes away the pain of developing a full authentication system from scratch for the application. The process involves creating an Auth0 account, configuring the tenant, creating an API, creating an application linked to the API, and enabling necessary details in Strapi. A frontend application can be used to test the authentication flow, with the React login example app being used as an example. Once authenticated, the user is redirected back to the React application with their access token, allowing them to access routes from the Strapi API as a logged-in user.