What is the Internet of Things (IoT)?

The Internet of Things (IoT) refers to a network of interconnected devices that can collect and exchange data. This concept involves a variety of hardware devices, sensors, and software that enable objects to communicate with each other over the internet. For example, smart home devices like thermostats, lights, and security cameras can share information and be controlled remotely via smartphones or web applications. The essence of IoT is its ability to gather data from the physical environment, analyze that data, and provide actionable insights, thus improving efficiency and enhancing user experiences.

The other choices delve into different areas that do not capture the core essence of IoT. While cryptocurrency pertains to digital currencies and financial transactions, social media is focused on connecting people rather than devices. Enhancements to traditional manufacturing processes may use IoT technologies, but they do not define what IoT is specifically. Thus, the definition of IoT as a network of interconnected devices that can collect and exchange data is accurate and encompasses its primary function and significance in today's technological landscape.