A microcontroller (also microcontroller unit, MCU or µC) is a small computer on a single integrated circuit consisting of a relatively simple CPU combined with support functions such as a crystal oscillator, timers, watchdog, serial and analog I/O etc. Program memory in the form of NOR flash or OTP ROM is also often included on chip, as well as a typically small amount of RAM.Microcontrollers are designed for small or dedicated applications. Thus, in contrast to the microprocessors used in personal computers and other high-performance or general purpose applications, simplicity is emphasized. Some microcontrollers may operate at clock frequencies as low as 32kHz, as this is adequate for many typical applications, enabling low power consumption (milliwatts or microwatts). They will generally have the ability to retain functionality while waiting for an event such as a button press or other interrupt; power consumption while sleeping (CPU clock and most peripherals off) may be just nanowatts, making many of them well suited for long lasting battery applications. Other microcontrollers may serve performance-critical roles, where they may need to act more like a Digital signal processor (DSP), using higher clock speeds and not needing such very low powered operation.

Microcontrollers are used in automatically controlled products and devices, such as automobile engine control systems, remote controls, office machines, appliances, power tools, and toys. By reducing the size and cost compared to a design that uses a separate microprocessor, memory, and input/output devices, microcontrollers make it economical to digitally control even more devices and processes. Mixed signal microcontrollers are common, integrating analog components needed to control non-digital electronic systems.

• Embedded design. The majority of computer systems in use today are embedded in other machinery, such as automobiles, telephones, appliances, and peripherals for computer systems. These are called embedded systems. While some embedded systems are very sophisticated, many have minimal requirements for memory and program length, with no operating system, and low software complexity. Typical input and output devices include switches, relays, solenoids, LEDs, small or custom LCD displays, radio frequency devices, and sensors for data such as temperature, humidity, light level etc. Embedded systems usually have no keyboard, screen, disks, printers, or other recognizable I/O devices of a personal computer, and may lack human interaction devices of any kind.

• Interrupts. Microcontrollers must provide real time (predictable, though not necessarily fast) response to events in the embedded system they are controlling. When certain events occur, an interrupt system can signal the processor to suspend processing the current instruction sequence and to begin an interrupt service routine (ISR, or "interrupt handler"). The ISR will perform any processing required based on the source of the interrupt before returning to the original instruction sequence. Possible interrupt sources are device dependent, and often include events such as an internal timer overflow, completing an analog to digital conversion, a logic level change on an input such as from a button being pressed, and data received on a communication link. Where power consumption is important as in battery operated devices, interrupts may also wake a microcontroller from a low power sleep state where the processor is halted until required to do something by a peripheral event.

• Programs. Microcontroller programs must fit in the available on-chip program memory, since it would be costly to provide a system with external, expandable, memory. Compilers and assembler are used to turn high-level language and assembler language codes into a compact machine code for storage in the microcontroller's memory. Depending on the device, the program memory may be permanent, read-only memory that can only be programmed at the factory, or program memory may be field-alterable flash or erasable read-only memory.

Why use Microcontrollers for my projects?

In contrast to general-purpose CPUs, microcontrollers may not implement an external address or data bus as they integrate RAM and non-volatile memory on the same chip as the CPU. Using fewer pins, the chip can be placed in a much smaller, cheaper package.

Integrating the memory and other peripherals on a single chip and testing them as a unit increases the cost of that chip, but often results in decreased net cost of the embedded system as a whole. Even if the cost of a CPU that has integrated peripherals is slightly more than the cost of a CPU + external peripherals, having fewer chips typically allows a smaller and cheaper circuit board, and reduces the labor required to assemble and test the circuit board. Wiki Reference

What all these mean is that you are able to rapid prototype your project with the desired results at a faster and cheaper way compared to using traditional discreet electronics