Well, two things.
1. Water conducts electricity. This is a problem when you have small electronics that are wet because then the electric current no longer follows the correct paths, instead it follows the paths that the water creates… This is bad.
2. Water Corrodes. Most of the exposed components include various metals, which can rust and become unable to effectively transmit the required electrical current to operate certain components. These small components rely upon specific voltages to be supplied in order to function.
Waterproofing effectively insulates these components from both the electrical conduction and the corrosion via various methods. Sometimes it’s simply removing any ingress points, other times it’s physically coating the electronics with plastic or other non-permeable membranes.
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