Edge computing differs from cloud computing by processing data closer to its source rather than relying on a centralized cloud infrastructure. This decentralized approach reduces latency, enhances real-time data processing, and alleviates bandwidth issues by minimizing the amount of data sent to the cloud. Edge computing is especially beneficial for applications requiring quick responses, such as IoT devices and autonomous vehicles. By facilitating efficient data handling at the edge of the network, it enhances overall performance and reliability.