The Internet of Things (IoT) is an emerging technology that tends to increasingly become part of everyday life. The multiple aspects of IoT, and the increasingly large number of devices, technologies and platforms in the field, led to the development of IoT technology in many areas. The Internet of Things is a technology that will allow the entry into a new economic era for the entire globe. IoT is a concept that defines a world where all the objects (cars, appliances, lighting systems, mobile devices, portable devices etc.) are connected to each other via the Internet. In this paper, there are presented the most important characteristics and major applications of IoT, and the technological challenges that the Internet of Things is facing. IoT is not the result of a single new technology, several complementary technical advances provide capabilities that, together, help to bridge the gap between the virtual world and the physical one. These capabilities support the IoT and the prospects of its development. In conclusion, businesses will need to begin to implement IoT technology if they want to survive over the long term, but they will also have to implement strategies that account for the many risks associated with the Internet of things.