Edge computing refers to a decentralized computing model that processes data closer to the source, rather than relying solely on centralized cloud servers. This technology minimizes latency and bandwidth usage, as data is analyzed and acted upon at the "edge" of the network, near where it is generated. By performing processing locally, edge computing supports real-time applications and enhances the performance of Internet of Things (IoT) devices. This approach is becoming increasingly important in areas like autonomous vehicles and smart city infrastructure.