What is IOT & How it works

What Is Internet Of Things And How Does It Work?

The internet of things or IoT as it is popularly known, is a massive network of connected devices, people and data centers. Anything that has a switch (on-off) can be connected to the internet, and share data about its surroundings or its own usage. These devices are capable of communicating with each other, and transfer data over a network without human intervention.

dThe connected devices could be anything – self driven cars, smart microwaves, wearable fitness devices, and so on. Let’s take a more detailed look to understand how it works.

The Components of IoT:

The internet of things is made up of several different elements, all of which are connected either physically or virtually. Each has its own importance and impacts the system in different ways.

A blockchain is basically a P2P network whose purpose is the maintenance of an open ledger to collect data (similar to a spreadsheet). Every node on the network carries exact copies of that ledger – this could run into thousands of copies; this is because as long as a computer is compatible, it can turn into a node by just running the software. As all the ledgers of all the nodes have to be identical, the network becomes immutable. A discrepancy on one ledger will invalidate that particular record; this makes the system almost 100% hack proof.

Devices with Inbuilt Sensors

These devices collect data – say temperature, pressure, video feed, etc. One device can have multiple sensors: your phone for example; it has a camera, GPS, accelerometer, gyroscope, and so on. But your phone is much more than just a sensor. Already there are billions of connected devices in the world, and it is expected to cross 1 trillion by 2025.


The collected data is sent to the cloud, via over a network – satellite, Bluetooth, Wi-Fi, cellular, and so on. The method of connectivity depends on the available bandwidth and the required bandwidth (which is in turn decided by the type of IoT application using it).

Data Processing

When this data reaches the cloud, it is processed using some software – the temperature and pressure readings we talked about earlier, they would be checked to ascertain if they are within normal ranges; video feeds could be checked for presence of intruders (more complex processing).

User Interface

This component is what makes the entire application useful to the end user; for example, if the temperature or pressure is beyond the acceptable range, it triggers an alert via email, or text to the user. End users can also randomly check in; take the example of the video feed of your house when you’re away on vacation. You can stream it through a mobile app or web browser, and if you see anything suspicious, call your security company. Users can also perform actions remotely that affect the system – like adjusting the pressure or temperature via the app. Some actions are triggered automatically; for example, when the presence of an intruder is sensed, the system may alert the local police in addition to sending you an alert. Health and fitness wearables track your movements, measure your heart rate and pulse, and suggest workout plans customized for you.

Benefits of IoT

The internet of things has already made a significant impact on our daily lives, often without us realizing it. Here are the benefits this technology has for business:

  • Efficient utilization of available resources.
  • Reduced human effort
  • Decreased expenditure.
  • Real-time marketing.
  • Improved customer experiences.
  • Higher integrity of data.
  • Possibility of automating repetitive or hazardous tasks.

Though IoT has potential to be used in any industry, the following industries have seen the biggest implementation:

  • Healthcare – wearables, medication storage
  • Hospitality including hotel management, restaurants, tour operators
  • Transport including fleet management.
  • Cold chain and supply chain
  • Self-driving cars
  • Home Automation (smart homes)
  • Agriculture
  • Retail business
  • Energy management
  • Animal husbandry including cattle and poultry farming

The internet of things is all around us. Businesses are using IoT applications to do business smarter, keep customers happier, and make more profits. Its benefits are too great to ignore anymore. If you haven’t got your own IoT application yet, we at IPIX Tech Services can help you.

As one of the leading software development companies in India, we have over a decade and a half of experience in crafting bespoke software solutions that help businesses perform better globally. We pride ourselves in mastering the latest technologies that emerge in the industry.

If you’re ready to jump on to the IoT bandwagon, our team is ready to pave the way for you – simply call us or email, and we’ll get back to you as soon as we can.