Bluetooth uses radio waves to send bundles of information. When you connect the earbuds to your phone, your phone sends out packets of sound to your earbuds which are somehow encoded. This means any radio receiver listening to the right frequency could potentially pick up on them, but not be able to understand them.
One of the downsides to Bluetooth is that it doesn’t check if the information was received properly. If your buds miss out one of the packets, your phone doesn’t know. This means there’s just be a tiny gap or glitch in the sound. On the other hand, systems like WiFi talk back and forth to check everything has been received. If you were sending music over WiFi and a packet got missed out, the receiver would send a message back to your phone asking it to send it again. This makes WiFi more reliable, but Bluetooth is basically designed to be cheap and low power, making it easy to put on loads of devices.
So traditional earpieces work with wires. Information (such as music) is sent through the wire as an electric signal. This signal is understood by the earpiece and it makes the speaker inside the earpiece vibrate in tune with the music, which means you hear the music. Bluetooth earpieces work almost the same, except instead of wires they use Bluetooth. Bluetooth is a super old and yet still highly used method of sending data without wires. Think of it like sending data through a mobile phone network, except it goes from your phone and to the earpiece in this case. The data is sent to the earpiece in a similar way to how it is sent through electricity, and the processor inside the earpiece can understand that data and can translate it to electrical signals for the speaker.
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