In this context, “software” refers to functionsA small portion of a program that’s set aside and given a name. It helps isolate key code in an easy-to-understand way, and it makes changes easier and less error prone. It’s a really important way to make programs easier to understand. May also be called a subroutine. in an IoTThe Internet of Things. A broad term covering many different applications where "things" are interconnected through the internet. device that are implemented by running instructions through some kind of processorA computer chip that does computing work for a computer. It may do general work (like in your home computer) or it may do specialized work (like some of the processors in your smartphone).. It’s distinct from “hardwareIn this context, "hardware" refers to functions in an IoT device that are built into a silicon chip or some other dedicated component. It's distinct from "software," which refers to instructions running on a processor.,” where functions are built into a siliconAn element (number 14 in the periodic table) that can be a semiconductor, making it the material of preference for circuits and micro-mechanical devices. chipAn electronic device made on a piece of silicon. These days, it could also involve a mechanical chip, but, to the outside world, everything looks electronic. The chip is usually in some kind of package; that package might contain multiple chips. "Integrated circuit," and "IC" mean the same thing, but refer only to electronic chips, not mechanical chips. or some other component.