palitu,

Depending. But yes. A lot of the time they go the long way around, and head out to some server and back to your local network.

If the internet is down, or the vendor shits off the server, the device stops working.

Home assistant is attempting to localise everything, and get different vendors devices to work together.

Note, for your hass install, it can be installed on any server. Though I am using the green device

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