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Internet of Things (IoT) Definition
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MAY 27, 2022
The Internet of Things, or IoT, is a network of physical objects that contain sensors, software and other features allowing hardware to connect to the internet and exchange data with online systems and other connected devices.
The objects connected to the IoT can range from simple household appliances to extremely complex industrial machinery. There are roughly 18 billion devices connected to the IoT worldwide, according to Ericsson. Many of these devices allow users to access remote functionality in real time. Connected devices have been around for decades, but 5G wireless networks and advances in semiconductor chips have opened the door for rapid expansion of the IoT in the coming years.
The IoT operates on three layers.
The physical layer of the IoT is the hardware used to connect a device to the internet, such as sensors. The physical layer is also called the perception layer because it is the layer that gathers information from the physical world or identifies other connected devices in the environment.
The next layer of the IoT is the network layer, which is responsible for connecting a device to other smart objects, servers or network devices and transmitting the data collected.
Finally, the IoT application layer provides services to users. This layer includes protocols and interfaces connected devices use to communicate with each other and their users.
IoT users also utilize remotes, devices such as smartphones, tablets, PCs and smartwatches, used to control IoT devices via a dashboard or other display.
Data collected from each device in an IoT network can be aggregated to help improve the performance of all the devices on the network. Insights gained from advanced IoT analytics can help make processes more efficient or even entirely automated. IoT-enabled automation is particularly useful when the automated tasks are repetitive, time-consuming or dangerous.
There are several different types of companies that profit from the IoT, including companies that make the chips and sensors inside connected devices, companies that produce the devices themselves and companies that create the software that makes the IoT functional.
The IoT has a large and rapidly growing list of applications:
The IoT is constantly generating massive quantities of data, so a growing number of companies are leveraging artificial intelligence to process that data and gain insights about IoT processes.
Machine learning is an application of AI technology that allows a connected device to automatically identify patterns or anomalies in data and use what it learns to improve on its own without human intervention. Machine learning technology can significantly improve equipment maintenance, help predict process outcomes and automatically adjust procedures based on information such as temperature, vibration or pressure. Machine learning can also help companies avoid unplanned shutdowns, increase their outputs and improve risk management.
Whether consumers like it or not, the future of appliances, vehicles, homes and even entire cities appears to be centered on the IoT. Connected devices can allow humans to make better decisions, giving them insights based on large quantities of data.
The IoT also allows people and businesses to track and monitor devices and processes at an unprecedented level, whether it be watching a home security camera on your smartphone or automatically checking the quality of the goods you are producing. IoT automation frees up precious time for users and employees, allowing them to devote more time and energy to tasks that involve higher-level thinking and problem-solving.
Before the 21st century, computer chips were too large and the internet was too limited to make connected devices worthwhile in most instances. However, in the early 1980s, graduate students in Carnegie Mellon University's computer science department added light sensors to a campus vending machine to remotely track the soda levels in the machine.
Consumer sensor expert Kevin Ashton reportedly coined the term "Internet of Things" in 1999 to describe objects with networked sensors that could sense things for themselves.
LG unveiled the world's first "digital, Web-enabled" smart refrigerator in 2000. In addition, the launch of the first Apple Inc. (AAPL) iPhone in 2007 and the subsequent rise of smartphones was a major watershed moment for the IoT as well.
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