
The Global Positioning System is actually a constellation of 27 Earth-orbiting satellites (24 in operation and three extras in case one fails). The U.S. military developed and implemented this satellite network as a military navigation system, but soon opened it up to everybody else.
A GPS receiver's job is to locate four or more of these satellites, figure out the distance to each, and use this information to deduce its own location. This operation is based on a simple mathematical principle called trilateration.
The GPS receiver has to know two things:
1. The location of at least three satellites above you
2. The distance between you and each of those satellites
The GPS receiver figures both of these things out by analyzing high-frequency, low-power radio signals from the GPS satellites. The receiver can figure out how far the signal has traveled by timing how long it took the signal to arrive.
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