The document discusses edge computing, which involves processing data at the edge of networks, close to where it is generated by IoT devices, rather than sending all data to centralized cloud servers. Edge computing can reduce latency, bandwidth costs, and improve privacy and security by keeping data processing localized. It describes how edge computing is needed as more data is generated by devices and applications like self-driving cars require real-time processing. Edge computing provides advantages over traditional cloud-based approaches like reduced latency and energy consumption. Potential applications of edge computing include smart cities and autonomous vehicles. Challenges to address include programming heterogeneous edge devices and ensuring security and privacy.