What is IoT?

IoT (Internet of Things) is the internetworking of physical devices, vehicles, buildings and other items—embedded with electronics, software, sensors, actuators, and network connectivity that enable these objects to collect and exchange data. IoT is expected to offer advanced connectivity of services, systems, and devices that go beyond machine-to-machine communications and covers a variety of protocols, domains, and applications. The interconnection of these embedded devices is expected to usher in automation in nearly all fields, while also enabling advanced applications like a smart grid, and expanding to the areas such as smart cities. And here are three different levels of IoT.
Sensor level: These devices collect data from the environment through sensors, and upload those data to cloud space through different communications protocol.
Cloud level: The data from each device is sent to the cloud platform, where it is processed and combined with data from other devices, and potentially with other business transactional data. Then cloud center sends processed data back to devices.
Application level: After receiving data from cloud data center, the application converts processed data into commands. Commands are actions performed by a device.