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It is a system that lets any devices that are connected to internet to comunicate with each other without human-to-human or human-to-devices interactions. For example, an airconditioner than can be switch on and off via smartphone, or the motion sensor that would swich on the light in your office.
A replay attack is a form of network attack when valid data transmission is fraudulently intercepted, then delayed or resent to mislead the receiver into doing what the hacker wants.