Edge computing is a technology that brings data processing closer to the source of data generation, such as IoT devices or sensors. Instead of sending all data to a centralized cloud server for processing, edge computing allows for quicker analysis and response times by handling data locally. This is especially useful in applications that require real-time decision-making, like autonomous vehicles or smart factories. By reducing the distance data must travel, edge computing can also decrease latency and bandwidth usage, leading to more efficient systems. It enhances privacy and security since sensitive data can be processed locally rather than transmitted over the internet.