The Internet of Things (IoT) is a network of physical devices, vehicles, home appliances, and other items embedded with sensors, software, and connectivity that allow them to collect and exchange data over the internet. These devices can communicate with each other and with centralized systems to perform tasks automatically and enable new forms of interaction between people and the physical world. IoT works by using sensors to collect data from the environment, transmitting that data over the internet, and analyzing it to trigger actions or provide insights.