Edge computing entails processing data near the source of its generation, rather than relying solely on centralized cloud servers. This approach reduces latency, improves response times, and enhances bandwidth availability for real-time applications. By distributing computing resources closer to end-users, edge computing allows for faster data processing and analytics, which is essential for applications like IoT, autonomous vehicles, and smart grids. Furthermore, this technology supports better data privacy and security by reducing the volume of data transmitted over networks. Overall, edge computing is pivotal in optimizing operational efficiencies in various industries.