The hot side is pointing away from the chip and has a heat sink on it. The system literally pumps the heat off of the processor. This system is not needed for most processors. It has no moving parts, therefore it is not prone to failure. But the system can be hard to get working.
Most people can avoid it.
The speed freaks who engage in overclocking are the only avid users of the Peltier cooler. They run the chip faster than it is designed, therefore making lots of heat. The performance of the units vary greatly as well. When purchasing a Peltier cooler, take into account the price, its performance, and how large it is. Alarms Many motherboard BIOS versions now offer the option of temperature monitoring.