Processing code usually runs on the host computer, which sends instructions to the Arduino, which runs a local interpreter such as Firmata. The development occurs on the host machine, but the work is done on the Arduino.
Processing has also found a home in mobile app development and as a foundation for Web apps thanks to a version of Processing written in JavaScript. Khan Academy uses it to teach computer programming.
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This story, "Program the world: 12 technologies you must know" was originally published by InfoWorld.