What is the Internet Of Things (IoT) and how does it work?

Discover the Internet of Things (IoT) and learn how it connects devices, improves automation and transforms everyday life.

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5/6/2025
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Have you ever wondered how your fridge can let you know when you run out of milk? Or how do some cities manage traffic intelligently to avoid traffic jams? Behind these everyday wonders is the Internet of Things (IoT), a technology that is radically changing the way we interact with the world.

In this guide, we explain everything about IoT without technical complications. Let's dive together into this fascinating universe of connected objects that is already transforming our lives.

1. Where the Internet of Things comes from: A look at its origins

The term “Internet of Things” didn't appear overnight. Its story is as fascinating as it is practical.

The first steps: older than you can imagine

Kevin Ashton coined the term “Internet of Things” in 1999 while working at MIT. But did you know that the first IoT device appeared much earlier?

In 1982, university students connected a Coca-Cola machine to the internet to remotely check if drinks were available and if they were cold. This was probably the first IoT device in history!

The idea was revolutionary but simple: to make everyday objects able to collect information and communicate with each other without us having to intervene.

From curiosity to technological revolution

IoT really took off in the first decade of 2000 thanks to:

  • Ever smaller electronic components
  • Much cheaper sensors
  • Better wireless technologies
  • More available IP addresses (thanks to the IPv6 protocol)

A fact that will surprise you: between 2008 and 2009, the number of devices connected to the internet surpassed the number of people on the planet for the first time. Today there are more than 15 billion IoT devices, and by 2025 there are expected to be more than 30 billion. That's almost 4 devices for each person!

The fuel of IoT: connectivity and big data

The IoT works thanks to two fundamental elements:

  1. Always be connected: The ability to access the internet from anywhere and across multiple devices.
  2. Big Data: All of these devices generate enormous amounts of information that needs to be processed.

This combination has taken us from having isolated “intelligent objects” to complete ecosystems of devices that work together. Think about how your smartwatch can connect to your phone, which in turn communicates with the lights in your house or your music system.

2. How the IoT works: Explained in a simple way

Although it seems like magic, the IoT works according to fairly clear principles. Let's break it down into easy-to-understand pieces.

The digital senses and muscles: devices and sensors

At the base of every IoT system we find:

  • Sensors: They are like the “senses” of devices. They capture real-world information such as temperature, motion or light.
  • Actuators: These are the “muscles” that perform physical actions such as turning on, turning off or adjusting something.
  • Microcontrollers: The “brain” that processes data and makes simple decisions.

For example, your smart thermostat uses sensors to detect room temperature and if people are present. Your small brain (microcontroller) decides if you should turn on the heating based on your preferences, and the actuator executes that command.

How they talk to each other: communication

In order for these devices to “talk”, they use different “languages” or protocols:

  • Some are perfect for low battery devices (such as Zigbee or Bluetooth LE)
  • Others are designed to send data over long distances (such as LoRaWAN)
  • And some are ideal for the home (such as WiFi)

5G is revolutionizing IoT because it allows you to connect many more devices simultaneously and with less delay. Imagine a city where thousands of traffic sensors, traffic lights and cameras can communicate instantly.

The brain of the operation: cloud platforms

Once devices capture data, where does all that information go? Here are cloud platforms that:

  1. Receive and store data from millions of devices
  2. They analyze them using intelligent algorithms
  3. They present useful results in dashboards or apps
  4. They coordinate communication between devices

Examples you may know are AWS IoT, Microsoft Azure IoT, or Google Cloud IoT.

The most valuable thing about IoT is data analysis. Thanks to artificial intelligence, these systems can:

  • Detect unusual patterns (such as abnormal water consumption that could indicate a leak)
  • Predict when a team will fail before it happens
  • Automatically optimize processes such as heating your home
  • Customize experiences based on your habits (like your playlist)

The Shadow of the IoT: Security and Privacy

Security is the Achilles' heel of IoT. For a system to be secure it must have:

  • Authentication: Verify that each device is who it says it is
  • Encrypted: Protect data while traveling on the internet
  • Updates: Keep software up to date against vulnerabilities
  • Insulation: Separate critical devices from less important devices

When it comes to privacy, it's essential that you know:

  • What information do your devices collect
  • How that information is used
  • Who has access to it

Always ask yourself: Do I really need my toaster to be connected to the internet?

3. The IoT in Action: Applications That Are Changing the World

IoT is transforming virtually every aspect of our lives. Let's look at some concrete examples that you're sure to recognize.

Your home is smarter than ever

The smart home is where we most visibly experience IoT:

  • Voice assistants such as Alexa or Google Home that control other devices
  • Smart thermostats Who learn when you're at home and your temperature preferences
  • Security systems that send you alerts to your cell phone if they detect movement
  • Connected appliances Like refrigerators that can do the shopping for you

Did you know that a fully connected home can have more than 50 IoT devices working together? From light bulbs to locks, to intelligent irrigation systems for your plants.

Wearables are also part of this ecosystem:

  • Smartwatches that not only show the time, but monitor your health 24/7
  • Smart rings that analyze the quality of your sleep
  • Sports shoes with sensors that improve your running technique

Cities that think: Smart Cities

Smart cities use IoT to improve urban life:

  • Smart streetlights that reduce their intensity when no one is around, saving energy
  • Garbage containers that let you know when they are full, optimizing collection routes
  • Parking sensors that guide you to free places, reducing search time

In Barcelona, for example, IoT sensors have managed to reduce traffic by 17% and reduce polluting emissions by the same proportion. That translates into a cleaner and less congested city.

Mobility is also transformed:

  • Connected cars that communicate with each other to prevent accidents
  • Traffic lights that adapt to traffic flow in real time
  • Charging stations for electric vehicles that optimize energy consumption

Factories of the Future: Industry 4.0

If you work in the industrial sector, you've probably already seen the impact of IoT:

  • Predictive maintenance: Sensors that detect when a machine is going to fail before it happens
  • Digital twins: Virtual replicas of physical equipment to simulate risk-free changes
  • Collaborative robots: Who work together with humans in a safe and efficient way

The numbers are impressive: a smart factory can increase productivity by up to 30% and reduce maintenance costs by 25%. Can you imagine the impact on competitiveness?

Connected Health: From the Hospital to Your Wrist

The healthcare sector is undergoing a revolution thanks to IoT:

  • Remote monitors for chronic patients who send vital data directly to the doctor
  • Smart pill boxes Who remember when to take their medication
  • Alert systems for older people who automatically detect falls

IoT-powered telemedicine reduces hospitalizations by 20%. This not only saves healthcare costs, but it also improves the quality of life of patients who can be cared for from home.

4. The good, the bad and the promising of the IoT

Like any revolutionary technology, IoT brings great advantages but also significant challenges.

The advantages: efficiency and savings

For companies, IoT means:

  • Automation of repetitive tasks, freeing up time for what's important
  • Reduction of energy consumption through intelligent systems
  • Improved inventory management with real-time tracking
  • Less downtime thanks to the early detection of problems

A real case that can inspire you: a manufacturing company reduced its operating costs by 18% after implementing IoT sensors in its machinery. The system detected abnormal patterns that indicated potential faults before they occurred, allowing for much less costly preventive repairs.

For you as a user, it translates to:

  • Lower energy consumption at home (and lower bills)
  • Appliances that last longer thanks to predictive maintenance
  • Save time on routine tasks
  • Personalized experiences that adapt to your preferences

The risks: security and privacy

But not everything is perfect in the IoT world:

  • Every connected device It is a potential gateway for hackers
  • Many manufacturers they don't update the software on their devices regularly
  • Personal Information What they collect can be very sensitive
  • Unified standards are lacking Of security

A worrying example: in 2016, the Mirai malware created a network of more than 600,000 infected IoT devices that caused the fall of important internet services in the United States. Most of these devices had default passwords that were never changed.

When it comes to privacy, think about this:

  • Your robot vacuum maps your house
  • Your smart speaker listens to conversations
  • Your TV records what programs you watch and when
  • Your activity tracker knows when you sleep and how much you move

How to take advantage of the IoT in an intelligent way

If you are a company thinking about implementing IoT:

  1. Define clear objectives: What specific problem do you want to solve?
  2. Start with a pilot project before doing a large scale implementation
  3. Prioritize safety right from the start, not as a later addition
  4. Train your team to make the most of the new tools
  5. Evaluate the return on investment not only in economic terms but also in operational terms

For you as a user:

  • Research reputation of manufacturers in terms of safety
  • Always change your passwords defaults for your devices
  • Create a separate WiFi network for your IoT devices if possible
  • Revise periodically What permissions do your apps have and what data do they share
  • Ask yourself if you really need That device is connected to the internet

5. The Future of IoT: What's Next

The IoT is evolving rapidly. Here are some trends we'll see in the coming years:

Edge Computing: Intelligence at the Edge

Instead of sending all data to the cloud for processing, more and more devices will be processing information locally. This means:

  • Faster answers
  • Lower bandwidth consumption
  • Increased privacy when processing sensitive data on the device
  • Operation even without an internet connection

Artificial Intelligence and Machine Learning

AI and IoT are natural allies:

  • Devices that learn your preferences without you having to program them
  • Increasingly accurate predictive systems
  • More natural and conversational voice interfaces
  • More sophisticated automation based on complex behaviors

5G and advanced connectivity

5G is designed with IoT in mind:

  • Capacity to connect up to 1 million devices per square kilometer
  • Ultra-low latency (response time) for critical applications
  • Longer battery life for remote devices
  • Bandwidths adapted to different needs

Sustainability and energy efficiency

The IoT will play a crucial role in the fight against climate change:

  • Optimization of energy consumption in buildings
  • Intelligent management of water resources
  • Waste reduction through predictive maintenance
  • Smart power grids that integrate renewable energy

Ready to dive into the IoT world?

The Internet of Things is not just a passing technological trend, but a fundamental transformation in our relationship with the objects that surround us. It's already changing how we live, work and relate to our environment.

Whether you want to make your home smarter, improve the efficiency of your business, or simply better understand this technology that is everywhere, I hope this guide has given you a clear and accessible vision.

Do you dare to take the first step? Maybe starting with a simple device like a smart bulb or a connected speaker. Or maybe implementing IoT sensors in your business to monitor critical aspects. The connected future is here, and the possibilities are nearly endless.

Do you want to learn more about how IoT and other technologies are transforming the world? At MBIT School we offer specialized programs in Deep Tech, Data Science and Artificial Intelligence. Contact us to find out how you can be part of this technological revolution!

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Great! Your request is already being processed. Soon you will have news.
Oops! Some kind of error has occurred.

Have you ever wondered how your fridge can let you know when you run out of milk? Or how do some cities manage traffic intelligently to avoid traffic jams? Behind these everyday wonders is the Internet of Things (IoT), a technology that is radically changing the way we interact with the world.

In this guide, we explain everything about IoT without technical complications. Let's dive together into this fascinating universe of connected objects that is already transforming our lives.

1. Where the Internet of Things comes from: A look at its origins

The term “Internet of Things” didn't appear overnight. Its story is as fascinating as it is practical.

The first steps: older than you can imagine

Kevin Ashton coined the term “Internet of Things” in 1999 while working at MIT. But did you know that the first IoT device appeared much earlier?

In 1982, university students connected a Coca-Cola machine to the internet to remotely check if drinks were available and if they were cold. This was probably the first IoT device in history!

The idea was revolutionary but simple: to make everyday objects able to collect information and communicate with each other without us having to intervene.

From curiosity to technological revolution

IoT really took off in the first decade of 2000 thanks to:

  • Ever smaller electronic components
  • Much cheaper sensors
  • Better wireless technologies
  • More available IP addresses (thanks to the IPv6 protocol)

A fact that will surprise you: between 2008 and 2009, the number of devices connected to the internet surpassed the number of people on the planet for the first time. Today there are more than 15 billion IoT devices, and by 2025 there are expected to be more than 30 billion. That's almost 4 devices for each person!

The fuel of IoT: connectivity and big data

The IoT works thanks to two fundamental elements:

  1. Always be connected: The ability to access the internet from anywhere and across multiple devices.
  2. Big Data: All of these devices generate enormous amounts of information that needs to be processed.

This combination has taken us from having isolated “intelligent objects” to complete ecosystems of devices that work together. Think about how your smartwatch can connect to your phone, which in turn communicates with the lights in your house or your music system.

2. How the IoT works: Explained in a simple way

Although it seems like magic, the IoT works according to fairly clear principles. Let's break it down into easy-to-understand pieces.

The digital senses and muscles: devices and sensors

At the base of every IoT system we find:

  • Sensors: They are like the “senses” of devices. They capture real-world information such as temperature, motion or light.
  • Actuators: These are the “muscles” that perform physical actions such as turning on, turning off or adjusting something.
  • Microcontrollers: The “brain” that processes data and makes simple decisions.

For example, your smart thermostat uses sensors to detect room temperature and if people are present. Your small brain (microcontroller) decides if you should turn on the heating based on your preferences, and the actuator executes that command.

How they talk to each other: communication

In order for these devices to “talk”, they use different “languages” or protocols:

  • Some are perfect for low battery devices (such as Zigbee or Bluetooth LE)
  • Others are designed to send data over long distances (such as LoRaWAN)
  • And some are ideal for the home (such as WiFi)

5G is revolutionizing IoT because it allows you to connect many more devices simultaneously and with less delay. Imagine a city where thousands of traffic sensors, traffic lights and cameras can communicate instantly.

The brain of the operation: cloud platforms

Once devices capture data, where does all that information go? Here are cloud platforms that:

  1. Receive and store data from millions of devices
  2. They analyze them using intelligent algorithms
  3. They present useful results in dashboards or apps
  4. They coordinate communication between devices

Examples you may know are AWS IoT, Microsoft Azure IoT, or Google Cloud IoT.

The most valuable thing about IoT is data analysis. Thanks to artificial intelligence, these systems can:

  • Detect unusual patterns (such as abnormal water consumption that could indicate a leak)
  • Predict when a team will fail before it happens
  • Automatically optimize processes such as heating your home
  • Customize experiences based on your habits (like your playlist)

The Shadow of the IoT: Security and Privacy

Security is the Achilles' heel of IoT. For a system to be secure it must have:

  • Authentication: Verify that each device is who it says it is
  • Encrypted: Protect data while traveling on the internet
  • Updates: Keep software up to date against vulnerabilities
  • Insulation: Separate critical devices from less important devices

When it comes to privacy, it's essential that you know:

  • What information do your devices collect
  • How that information is used
  • Who has access to it

Always ask yourself: Do I really need my toaster to be connected to the internet?

3. The IoT in Action: Applications That Are Changing the World

IoT is transforming virtually every aspect of our lives. Let's look at some concrete examples that you're sure to recognize.

Your home is smarter than ever

The smart home is where we most visibly experience IoT:

  • Voice assistants such as Alexa or Google Home that control other devices
  • Smart thermostats Who learn when you're at home and your temperature preferences
  • Security systems that send you alerts to your cell phone if they detect movement
  • Connected appliances Like refrigerators that can do the shopping for you

Did you know that a fully connected home can have more than 50 IoT devices working together? From light bulbs to locks, to intelligent irrigation systems for your plants.

Wearables are also part of this ecosystem:

  • Smartwatches that not only show the time, but monitor your health 24/7
  • Smart rings that analyze the quality of your sleep
  • Sports shoes with sensors that improve your running technique

Cities that think: Smart Cities

Smart cities use IoT to improve urban life:

  • Smart streetlights that reduce their intensity when no one is around, saving energy
  • Garbage containers that let you know when they are full, optimizing collection routes
  • Parking sensors that guide you to free places, reducing search time

In Barcelona, for example, IoT sensors have managed to reduce traffic by 17% and reduce polluting emissions by the same proportion. That translates into a cleaner and less congested city.

Mobility is also transformed:

  • Connected cars that communicate with each other to prevent accidents
  • Traffic lights that adapt to traffic flow in real time
  • Charging stations for electric vehicles that optimize energy consumption

Factories of the Future: Industry 4.0

If you work in the industrial sector, you've probably already seen the impact of IoT:

  • Predictive maintenance: Sensors that detect when a machine is going to fail before it happens
  • Digital twins: Virtual replicas of physical equipment to simulate risk-free changes
  • Collaborative robots: Who work together with humans in a safe and efficient way

The numbers are impressive: a smart factory can increase productivity by up to 30% and reduce maintenance costs by 25%. Can you imagine the impact on competitiveness?

Connected Health: From the Hospital to Your Wrist

The healthcare sector is undergoing a revolution thanks to IoT:

  • Remote monitors for chronic patients who send vital data directly to the doctor
  • Smart pill boxes Who remember when to take their medication
  • Alert systems for older people who automatically detect falls

IoT-powered telemedicine reduces hospitalizations by 20%. This not only saves healthcare costs, but it also improves the quality of life of patients who can be cared for from home.

4. The good, the bad and the promising of the IoT

Like any revolutionary technology, IoT brings great advantages but also significant challenges.

The advantages: efficiency and savings

For companies, IoT means:

  • Automation of repetitive tasks, freeing up time for what's important
  • Reduction of energy consumption through intelligent systems
  • Improved inventory management with real-time tracking
  • Less downtime thanks to the early detection of problems

A real case that can inspire you: a manufacturing company reduced its operating costs by 18% after implementing IoT sensors in its machinery. The system detected abnormal patterns that indicated potential faults before they occurred, allowing for much less costly preventive repairs.

For you as a user, it translates to:

  • Lower energy consumption at home (and lower bills)
  • Appliances that last longer thanks to predictive maintenance
  • Save time on routine tasks
  • Personalized experiences that adapt to your preferences

The risks: security and privacy

But not everything is perfect in the IoT world:

  • Every connected device It is a potential gateway for hackers
  • Many manufacturers they don't update the software on their devices regularly
  • Personal Information What they collect can be very sensitive
  • Unified standards are lacking Of security

A worrying example: in 2016, the Mirai malware created a network of more than 600,000 infected IoT devices that caused the fall of important internet services in the United States. Most of these devices had default passwords that were never changed.

When it comes to privacy, think about this:

  • Your robot vacuum maps your house
  • Your smart speaker listens to conversations
  • Your TV records what programs you watch and when
  • Your activity tracker knows when you sleep and how much you move

How to take advantage of the IoT in an intelligent way

If you are a company thinking about implementing IoT:

  1. Define clear objectives: What specific problem do you want to solve?
  2. Start with a pilot project before doing a large scale implementation
  3. Prioritize safety right from the start, not as a later addition
  4. Train your team to make the most of the new tools
  5. Evaluate the return on investment not only in economic terms but also in operational terms

For you as a user:

  • Research reputation of manufacturers in terms of safety
  • Always change your passwords defaults for your devices
  • Create a separate WiFi network for your IoT devices if possible
  • Revise periodically What permissions do your apps have and what data do they share
  • Ask yourself if you really need That device is connected to the internet

5. The Future of IoT: What's Next

The IoT is evolving rapidly. Here are some trends we'll see in the coming years:

Edge Computing: Intelligence at the Edge

Instead of sending all data to the cloud for processing, more and more devices will be processing information locally. This means:

  • Faster answers
  • Lower bandwidth consumption
  • Increased privacy when processing sensitive data on the device
  • Operation even without an internet connection

Artificial Intelligence and Machine Learning

AI and IoT are natural allies:

  • Devices that learn your preferences without you having to program them
  • Increasingly accurate predictive systems
  • More natural and conversational voice interfaces
  • More sophisticated automation based on complex behaviors

5G and advanced connectivity

5G is designed with IoT in mind:

  • Capacity to connect up to 1 million devices per square kilometer
  • Ultra-low latency (response time) for critical applications
  • Longer battery life for remote devices
  • Bandwidths adapted to different needs

Sustainability and energy efficiency

The IoT will play a crucial role in the fight against climate change:

  • Optimization of energy consumption in buildings
  • Intelligent management of water resources
  • Waste reduction through predictive maintenance
  • Smart power grids that integrate renewable energy

Ready to dive into the IoT world?

The Internet of Things is not just a passing technological trend, but a fundamental transformation in our relationship with the objects that surround us. It's already changing how we live, work and relate to our environment.

Whether you want to make your home smarter, improve the efficiency of your business, or simply better understand this technology that is everywhere, I hope this guide has given you a clear and accessible vision.

Do you dare to take the first step? Maybe starting with a simple device like a smart bulb or a connected speaker. Or maybe implementing IoT sensors in your business to monitor critical aspects. The connected future is here, and the possibilities are nearly endless.

Do you want to learn more about how IoT and other technologies are transforming the world? At MBIT School we offer specialized programs in Deep Tech, Data Science and Artificial Intelligence. Contact us to find out how you can be part of this technological revolution!

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