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Beacons are low-cost Bluetooth transmitters that can deliver proximity-based messages by transmitting signals to nearby devices, allowing those devices to determine their proximity to the beacon. Beacons do not transmit content directly but enable devices to figure out their proximity, allowing location-based apps to provide contextual information to customers based on their location in a store. iBeacon is a specific Bluetooth technology used by Apple devices to detect beacons, while beacons are the physical hardware devices that transmit and receive Bluetooth low energy signals.