What does the term 'internet of things (IoT)' encompass?

The term 'Internet of Things (IoT)' specifically refers to the network of physical devices that are embedded with sensors, software, and other technologies that allow them to connect and exchange data over the internet. This interconnectedness enables these devices, whether they are home appliances, wearable technology, industrial machines, or other equipment, to collect and share data in real-time, facilitating automation, improved efficiency, and enhanced user experience.

This understanding of IoT highlights its significance in creating smart environments where devices can communicate and operate in concert. The physical aspect of the devices is critical, as it distinguishes IoT from other technological concepts that may focus on virtual or digital solutions. For example, while applications and virtual devices are essential in the broader digital landscape, they do not embody the core definition of IoT, which emphasizes the integration of physical items into a network.