Fog computing extends cloud computing by providing security and data processing capabilities at the edge of the network, close to end users and devices. It aims to address issues like high latency and bandwidth usage that can occur when all data processing is done in the cloud. Fog computing deploys computing, storage, and applications closer to end devices and users in order to improve response times for latency-sensitive applications like smart grids and connected vehicles. It creates a distributed network that balances resources between the cloud and edge devices.