Edge computing has emerged as a pivotal paradigm in modern computing, revolutionizing how data is processed, managed, and utilized across diverse industries. This paper explores the architecture and applications of edge computing, focusing on its fundamental principles, components, and transformative capabilities. The architecture of edge computing decentralizes computational tasks and data storage from centralized data centers to distributed nodes closer to the data source. At the forefront are edge devices, such as IoT sensors and smartphones, which capture and transmit data. Edge nodes and servers, strategically positioned at the network edge, preprocess and analyze this data locally before selectively forwarding it to centralized clouds or data centers. This architecture minimizes latency, optimizes bandwidth usage, and enhances system reliability and security. Applications of edge computing span various domains, including IoT, autonomous vehicles, healthcare, and telecommunications. In IoT, edge computing enables real-time data processing and decision-making, supporting smart cities and industrial automation. Autonomous vehicles rely on edge computing for immediate sensor data analysis and navigation decisions without relying on distant data centers. Healthcare applications benefit from remote patient monitoring and personalized medicine, leveraging edge computing’s ability to process sensitive health data locally and securely. Telecommunications leverage edge computing to optimize content delivery and enhance 5G network performance by distributing computing tasks closer to users. Security and surveillance systems utilize edge AI for real-time video analytics, improving threat detection and response times. In conclusion, edge computing architecture facilitates scalable, efficient, and resilient computing solutions tailored to the demands of modern applications. Its decentralized approach enhances data processing speed, reliability, and security while supporting innovative advancements across industries. As organizations embrace digital transformation, edge computing continues to redefine computing paradigms, driving the evolution towards a more interconnected and responsive digital ecosystem.