The Internet of Things (IoT) refers to the network of physical devices embedded with sensors, software, and other technologies designed to connect and exchange data with each other over the internet. These devices range from everyday household items like refrigerators to industrial machinery. IoT functions by collecting data from the environment and sending it to centralized servers or clouds for processing. This data can then be analyzed, allowing for automation and intelligent decision-making. IoT enhances efficiency in various industries by enabling real-time monitoring, control, and optimization of processes, contributing to the concept of smart environments.