The term 'edge computing' refers to a distributed computing paradigm that brings data processing closer to the data source rather than relying on a centralized data center. This approach minimizes latency and bandwidth use, improving the speed and efficiency of applications, particularly in time-sensitive scenarios like IoT systems. By processing data at the edge, organizations can make quicker decisions while enhancing overall system performance. Edge computing is increasingly relevant for applications in fields such as smart cities, autonomous vehicles, and real-time analytics.