What is IoT? Internet of Things and How does it work?

This article covers the advantages, importance, and practical applications of IoT and how IoT changed the world and shaped many industries.

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    As technology advances, everything is connected to each other through the internet. It has a name now: the Internet of Things.

    A lot is being said about the Internet of Things (IoT) and how it will affect everything from how we travel and shop to how manufacturers keep track of their inventory. But what exactly is this Internet of Things?

    To provide an overview: the term "Internet of Things" refers to connecting any device to the internet and other connected devices. The Internet of Things (IoT) consists of an extensive interconnected system of devices, buildings, cars, and people that work together to monitor and exchange information about their use and the surrounding environment.

    The advent of very low-cost computer chips and the widespread availability of wireless networks have made it easy to include anything from a single pill to a large airplane in the IoT.

    Everything from intelligent microwaves, which can determine how long to cook food, to self-driving cars, which use smart sensors to detect obstacles in their path, to wearable fitness devices, which can track your heart rate and steps taken throughout the day and use this data to recommend individualized workout routines, are all examples of this concept. You can even get linked footballs that record data like how far and fast you can throw them through an app and use it for future practice.

    By interconnecting all these devices and integrating them with sensors, we can give hitherto unintelligent devices the ability to exchange real-time data without human intervention. The Internet of Things is merging the digital and physical worlds, making the very fabric of our environment more intelligent and reactive.


    In this article, we have compiled a list of the most frequently asked questions about the Internet of Things and tried to answer them. With this article, you will learn;

    • What is IoT? How does IoT work?
    • What industries can benefit from the IoT?
    • What are the benefits of the IoT for organizations?
    • What technologies have made the IoT possible?
    • And what are the IoT applications?

    How Does IoT Work?

    Let’s find out how the IoT works.

    Connected devices and embedded computers comprise the "Internet of Things" (IoT) ecosystem.

    When anything is linked to the internet, it can employ sensors to gather information about its surroundings. It processes the information with the help of processors and transmits it to one or more receivers with built-in network connectivity.

    The collected information is shared through an IoT gateway. Connectivity issues between gadgets or between gadgets and the cloud can be resolved using this method. This means that information can be sent to a cloud service for analysis and management or another IoT device for in-house processing.

    IoT with an Example

    Let's look at IoT with an example to make it clear. Your linked vehicle will notify your thermostat of your sudden arrival at home as you drive up. Thermostats collect and process this information to heat or cool a space based on your preferences. It operates in this fashion on the way back to your house. The only thing that has to be done by a person is to set the desired temperature; the rest is handled automatically by the Internet of Things.

    The obtained sensor technology can, of course, be used immediately and stored for further analysis. Artificial intelligence (AI) equipped with an autonomous learning system can eventually execute the analysis alongside human experts.

    This implies that the IoT system in a smart home reacts in real time to decide the ideal moment to adjust the temperature. Information gathered by the device over a long period of time can potentially be used. As a bonus, the energy provider can mine a wealth of information from the IoT data generated daily by all the linked thermostats. The provider will use this information for research on enhancing the quality of its services.

    What Technologies Have Made the IoT Possible?

    Even though the idea of IoT has been around for a long time, it has only recently become possible because of improvements in several different technologies.

    Access to Sensor Technology that is cheap and uses little power

    More manufacturers can use IoT technology now that sensors are easier to buy and more reliable.



    With various network protocols for the internet, it's easy to connect sensors to the cloud and other "things" so that data can be sent quickly.


    Platforms for Cloud Computing

    With more cloud platforms, businesses and consumers can use the infrastructure they need to grow without managing it all.


    Analytical Tools and Machine Learning

    With improvements in machine learning and analytics, as well as access to different and large amounts of data stored in the cloud, businesses can find answers to questions more quickly and easily.


    Conversational artificial intelligence (AI)

    Natural-language processing (NLP) has been added to IoT devices, like digital personal assistants Alexa, Cortana, and Siri, thanks to improvements in neural networks. This makes them more appealing, affordable, and useful for home use.


    Machine Learning Article

    For further information, read our article about machine learning.

    The Internet of Things Devices

    Personal Safety

    IoT is the driving force behind today's more technologically advanced and safe homes. The sensors, lights, alarms, and cameras that make up a home's security system are all linked together through the internet of things (IoT) and may be operated remotely via a smartphone app.

    Sensors that monitor physical movement

    With alarms and monitoring, smart home security cameras provide you with peace of mind. Sensors in activity trackers allow for continuous monitoring and transmission of vital health data. You can keep tabs on and regulate vitals like blood pressure, hunger, exercise, and oxygen saturation.

    Workplace Security and Risk Management

    Sensors can be set up in order to identify everyone who attempts to enter a restricted area. They are also able to spot pressure buildups and detect and repair minor leaks of potentially dangerous substances.

    Why Is IoT Important?

    The Internet of Things (IoT) is essential because, by 2025, 75 billion devices are expected to be connected to the internet. As the number of IoT devices on the market grows, so does the need for security. Each of these devices needs to have a strong identity built into it to ensure it can communicate and keep its integrity. PKI will be a big part of how safe IoT devices are.

    Why is IoT for the Future? What Is the Future of IoT?

    In the future, we can expect a smoother fusion of technology and the human experience. The metaverse could be a ways off, but in the meanwhile, we can expect to have more "genuine" sensory experiences via our interactions with the devices in our environment, thanks to advancements in 3D audio, enhanced virtual reality, and AI-powered real-time personalization.

    In addition, the advent of 5G and worldwide accessible fast connections will give people a quantum-like capacity to share these experiences over any distance. The ramifications of this are far-reaching and may affect how we approach our essential activities and institutions, such as employment, surgery and medical treatment, real estate, shopping, travel, and personal connections.

    What Are the Benefits of the IoT for Organizations?

    Here are the benefits of the IoT for organizations and businesses:

    Increase Innovation

    Internet of Things analytics discovers new commercial prospects. By gathering client data, organizations can construct tailored advertising campaigns.

    You can transform data into insights and actions using AI and machine learning.

    Data and patterns can anticipate future events. Warranty data combined with IoT data helps forecast maintenance issues. This can enhance consumer service and loyalty.

    Improve Safety

    Digital and physical infrastructure monitoring can increase performance, efficiency, and safety. Combining onsite monitor data with hardware and firmware version data enables automated system upgrades.

    Scale Distinct Solutions

    Customer-focused IoT deployments can boost satisfaction. To minimize shortages, trendy items can be quickly supplied.

    What Are the Pros and Cons of IoT?

    The Internet of Things (IoT) shows how a system works in real-time by collecting, combining, and analyzing data about all of its parts. It covers everything, from equipment and infrastructure operations to supply chains and logistics operations. In addition, IoT has many pros, such as:

    • Getting information from any computer and being able to use it anywhere, at any time.
    • Putting together a network of many electronic devices and making sure they can talk to each other as well as possible.
    • Putting tasks and processes on auto mode.
    • Improving the quality of service and how customers feel about it.
    • Getting less help from people and saving money on labor costs.
    • Data packet transfers take less time and cost less money.
    • Getting more done and spending less on making things.
    • Keeping an eye on and making changes to all business processes.
    • Getting the best out of both strategic and business decisions.

    Here we listed some of the cons of the IoT:

    • The Internet of Things threatens IT security.

    Data security and privacy are both threatened by the Internet of Things today. The IoT connects billions of devices to the internet, meaning that users need to protect the same number of data points, each of which is a possible attack.

    By taking advantage of the close connection between IoT devices, a cybercriminal can use the weakness of a single point to get access to all network data. Then, they could steal the data or even mess it up so it couldn't be used. As the number of connected devices grows, so does the amount of shared and exchanged data, which raises the risk of intrusions and hacking.

    This risk is even more common because it is often up to the user to update IoT devices, which usually fixes security flaws. Users might not run updates as often as they should, making the system more vulnerable.

    • The privacy of personal information

    Many smart technologies require users to enter their login or other personal information, which could be used in a leak.

    • Companies that manage and maintain many IoT devices are finding it harder to collect and manage data from the whole IoT ecosystem.
    • Currently, there is no international standard for compatibility in this area.

    What Industries Can Benefit From The IoT?

    While we predict IoT will impact every industry in some manner, specific situations among the three groupings of consumers, governments, and ecosystems will gain the most from IoT. We listed sectors that can benefit from the IoT;

    • Manufacturing
    • Defense
    • Agriculture
    • Infrastructure
    • Retail
    • Automotive
    • Public Sector
    • Logistics
    • Utilities
    • Healthcare

    What Are the IoT Applications?

    The Internet of Things is most effective for businesses using sensors to improve their operations.

    IoT in Manufacturing

    Manufacturers can obtain a competitive edge by adopting production-line monitoring to allow proactive repair of equipment when sensors identify approaching breakdowns. Sensors can detect when there is a drop in production. In the event of a sensor alarm, industrial machinery can be checked for accuracy or taken out of service to undergo maintenance. As a result, businesses can save money, increase their assets' availability, and better control their assets' performance.

    IoT in Agriculture

    The Internet of Things has brought several changes in agriculture, such as the introduction of moisture sensors. Farmers can now get more precise data for irrigation scheduling because of the widespread use of these sensors. As an added convenience, moisture sensors may be linked to the Internet of Things (IoT) apps that manage the irrigation equipment, allowing for autonomous watering to be triggered in response to sensor readings.

    IoT in the Automotive Industry

    The potential benefits of the Internet of Things (IoT) applications in the automobile sector are substantial. In addition to improving manufacturing lines, IoT-enabled sensors in already-operating cars can warn drivers of approaching equipment failure and provide helpful suggestions. IoT-based apps offer automotive manufacturers and suppliers valuable data that can be used to improve vehicle reliability and customer communication.

    IoT in Retail

    Internet of Things applications help with inventory management, customer service, supply chain efficiency, and cost-cutting in the retail industry. Smart shelves, equipped with weight sensors, can automatically check inventory and trigger alarms if things are running short by collecting RFID-based information and sending it to the IoT platform, for instance. To keep clients engaged, beacons can send them personalized advertisements.

    IoT in Logistics and Transportation

    Many Internet of Things applications can help improve transportation and logistics. With the use of IoT sensor data, the routes of fleets of vehicles, trucks, ships, and trains carrying merchandise can be adjusted for factors like weather, vehicle accessibility, and driver availability. Sensors for track-and-trace and temperature control monitoring might be included within the inventory itself. IoT monitoring systems that provide warnings when temperatures increase or decrease to a level that affects the product would be very useful for the food and beverage, floral, and pharmaceutical sectors, which commonly handle temperature-sensitive inventory.

    IoT in Healthcare

    The healthcare sector may reap several advantages from IoT asset monitoring. The medical staff often needs the precise positioning of wheelchairs and other patient-assistance equipment. If wheelchairs at a hospital are fitted with IoT sensors, then anybody in need of one can easily locate the closest one using the hospital's IoT asset monitoring application. Many hospital assets can be monitored in this fashion, allowing for accurate accounting of the money spent on and utilization of the hospital's physical assets across all departments.

    IoT in the Public Sector

    The public sector and other service-related contexts also stand to gain greatly from the Internet of Things. Government-run utilities, for instance, may alert their customers of power outages, water main breaks, and sewage overflows with the use of Internet of Things (IoT)-based apps. Using the information gathered by IoT apps, utilities can better prepare for and respond to outages and recover from them more quickly.

    How is the IoT Changing the World?

    The Internet of Things (IoT) is rapidly becoming one of the most talked about innovations of recent years. Some people have the audacity to repeat the claim that the Internet of Things (IoT) will revolutionize our lives, despite its future being less distant than that of other "trendy" technologies like robots or nanotechnology.

    And we've already covered the advantages and practical applications of IoT and how this technology changed the world and shaped the development of many industries and organizations. You decide!


    Ovhcloud - What is IoT?

    Oracle - What is IoT?

    Zdnet - What is Internet of Things?

    IBM - What is the IoT?

    Builtin - Internet Things

    Redhat - What is IoT?

    Insider Intelligence - Internet of Things Definition

    SAP - What is IoT?

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    Halime Yılmaz

    Content Marketing Specialist

    13 min read

    17 November 2022, Thursday

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