What is IoT? Explained simply

IoT is everywhere—but what does that actually mean?

What do your smart thermostat, an ESP32 prototype, a Bluetooth-enabled electric toothbrush, and a connected truck have in common?
They all belong to the “Internet of Things” – IoT for short.

The term is used everywhere, but rarely explained.
This article provides you with clear and practical information on:

  • What exactly is IoT?

  • How it works technically

  • Where you already use IoT in everyday life (and in industry)

  • Which devices are included

  • And why the topic is not only cool, but also critical

What does IoT mean – explained simply

IoT stands for “Internet of Things.”, also: Internet der Dinge.

This refers to a network of physical devices, which:

  1. Collect data (e.g., via sensor)

  2. communicate with each other or with a cloud

  3. react, control, or automate

Example: A temperature sensor regularly sends measurements to your ESP32. This controls a relay—or sends the data via MQTT to your smart home server.

The key point:
IoT devices are not traditional computers, but they behave like small, networked mini PCs – often invisible, but active.

What are typical IoT devices? (Examples)

IoT deviceFunction
smart thermostatMeasure temperature, controllable via app
water meterSend consumption data via radio or Wi-Fi
ESP32 + SensorCollect & send measurement data
voice assistantCentral control (via cloud)
truck trackerTransmit GPS position live
Smart lampCan be switched via app or voice command
washing machineError diagnosis or consumption report

Depending on the application, the devices can be connected via Wi-Fi, Bluetooth, Zigbee, LoRa, NB-IoT, or cellular networks.

How does IoT work technically?

IoT usually consists of three layers:

1. Sensors / Actuators

  • Temperature, light, movement, air quality, voltage...

  • Actuators such as relays, motors, LEDs, valves

2. Communication

  • Protocols: MQTT, HTTP/REST, CoAP, Zigbee, Modbus

  • Transmission: Wi-Fi, Ethernet, 5G, LoRaWAN, Bluetooth

Example: An ESP32 sends measured values to a local Mosquitto broker via MQTT. Home Assistant reads this data and uses it to control the lighting.

3. Data processing / Cloud / Server

  • Data is evaluated, stored, or visualized.

  • e.g. with Node-RED, Home Assistant, Grafana, or in the cloud

IoT in everyday life – where you already use it

IoT is no longer a thing of the future, but rather standard:

  • Smart home devices (heating, windows, lighting)

  • Wearables (fitness trackers, smartwatches)

  • Agriculture (soil moisture, weather data, feeding)

  • Industry (predictive maintenance, machine control)

  • Automotive (OTA updates, telematics, sensor fusion)

And IoT is often invisibly integrated – e.g. in washing machines, electricity meters, or medical devices.

DIY IoT with ESP32, Arduino, and more

Many makers use IoT for their own projects—for example:

  • Indoor air quality monitor with ESP32 + BME280 + MQTT

  • Smart garden irrigation system

  • Energy consumption logger with Open Energy Monitor

  • Home Assistant integration via REST or MQTT

Popular tools/platforms:

  • ESPHome

  • Tasmota

  • PlatformIO

  • Node-RED

  • Mosquitto

  • OpenHAB / Home Assistant

Criticism of the IoT – justified or panic?

As exciting as IoT is, there are also serious problems:

Security:

  • default passwords

  • Open ports

  • No updates

  • OTA without signature
    Gateway for attacks (e.g., botnets such as Mirai)

Cloud dependency:

  • Many devices only work with the Internet.

  • Manufacturers can retroactively disable devices

  • Data protection often lacks transparency

Tip: Use local IoT solutions whenever possible—e.g., Home Assistant + MQTT—instead of cloud-based solutions.

What is the difference between IoT and smart home?

 IoTSmart Home
DefinitionAll kinds of networked devicesFocus: Home automation
siteeverywhere (industry, mobility, cities, etc.)at home
devicesSensors, actuators, machines, vehiclesLamps, thermostats, cameras, voice assistants
GoalEfficiency, automation, networkingComfort, control, energy savings

Smart Home is a sub-area of IoT.

FAQ – Frequently asked questions

What does IoT mean in German?

IoT stands for Internet of Things, auf Deutsch: Internet der Dinge.

What are typical IoT devices?

Example: Smart thermostat, ESP32 with sensors, smart light bulb, GPS tracker, voice assistant, electricity meter.

Is IoT dangerous?

It can be unsafe when manufacturers build poor software. Updates, secure networks, local control, and no open ports are important.

What is MQTT in the context of IoT?

MQTT is a lightweight protocol, ideal for IoT. Devices publish or subscribe to messages via a broker.

What platforms are available for DIY IoT?

Popular options include: Home Assistant, ESPHome, Node-RED, Tasmota, PlatformIO, Mosquitto.

Conclusion: IoT is everywhere—and it is becoming increasingly important

Whether in industry, everyday life, or the maker world, IoT has long since permeated our devices, homes, and systems.

If you understand IoT, you understand today's technology.
And best of all: With tools such as ESP32, MQTT, VSCode, and others, you can build it yourself—securely, locally, and without cloud dependency.