Watching Without the Wait
Not long ago, watching a video online meant waiting for the whole file to download first. A long film could take ages before a single second played. Streaming changed that. Now you tap play and the picture appears almost immediately, with no finished file ever sitting on your device. The clever part is that you are watching the video while it is still arriving.
Delivered in Small Pieces
A streaming service does not send the whole video at once. It breaks the video into many small chunks, each holding a few seconds of footage, and sends them across the internet one after another. Your device plays each chunk as it arrives while the next ones are already on their way. Because you only ever need the next few seconds, playback can start as soon as the first chunk lands instead of waiting for the entire film.
The Buffer
To keep things smooth, your device keeps a small reserve of upcoming chunks ready to play. This reserve is called the buffer. As long as the buffer stays ahead of what you are watching, the video plays without interruption. If your connection slows and the chunks cannot arrive fast enough, the buffer empties, the video pauses, and you see the loading spinner while it refills. That moment of buffering is simply the player waiting for more chunks.
Matching the Connection
Modern streaming goes one step further with adaptive streaming. The service keeps several versions of the same video at different quality levels, from sharp and detailed to small and light. It constantly watches how fast your connection is delivering chunks and switches to the version that fits. This is why a video sometimes looks blurry for a moment and then snaps into focus: it dropped to a lighter version to avoid pausing, then climbed back up once the connection allowed.
Source
This article was written using information from Wikipedia.