The Internet of Things (IoT) for short has recently gained much traction due to its potential for transforming business applications and everyday life.
IoT can be defined as a network of computationally intelligent physical objects (any object such as cars, fridges, industrial sensors, and so on) that are capable of connecting to the internet, sensing real-world events or environments, reacting to those events, collecting relevant data, and communicating it over the internet.
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This simple definition has enormous implications and has led to exciting concepts, such as wearables, smart homes, smart grids, smart connected cars, and smart cities, that are all based on this basic concept of an IoT device.
After dissecting the definition of IoT, four functions come to light as being performed by an IoT device.
These include sensing, reacting, collecting, and communicating.
All these functions are performed by using various components on the IoT device.
Reacting or controlling is performed by actuators, the collection is a function of various sensors, and communication is performed by chips that provide network connectivity.
One thing to note is that all these components are accessible and controllable via the internet in the IoT.
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An IoT device on its own is perhaps useful to some extent, but if it is part of a broader IoT ecosystem, it is more valuable.
A typical IoT can consist of many physical objects connecting with each other and to a centralized cloud server.
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A five-layer model can be used to describe IoT, which contains a physical object layer, device layer, network layer, services layer, and application layer.
Key Points to Remember
- Internet of Things The Internet of Things (IoT) for short has recently gained much traction due to its potential for transforming business applications and everyday life.
- This simple definition has enormous implications and has led to exciting concepts, such as wearables, smart homes, smart grids, smart connected cars, and smart cities, that are all based on this basic concept of an IoT device.
- After dissecting the definition of IoT, four functions come to light as being performed by an IoT device.
- These include sensing, reacting, collecting, and communicating.
Going Deeper: Advanced Concepts
Each layer or level is responsible for various functions and includes multiple components.
These are
Conclusion
Internet of Things represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.