Cognitive radio is a type of wireless communication that senses its operational environment and can change its transmission parameters accordingly. It allows unlicensed users to access portions of the radio spectrum normally reserved for licensed users, provided they do not cause harmful interference. Key functions of cognitive radio include spectrum sensing, analysis, management and sharing to efficiently utilize available spectrum. It provides benefits like optimal diversity, improved spectrum efficiency and quality of service. However, issues like spectrum management and ensuring co-existence with other systems need to be addressed for cognitive radio to be effectively implemented. Potential applications include use in emergency communications and wireless regional area networks.