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The Serial Port uses the Timed protocol and therefore must follow an established Baud Rate. This Baud Rate is typically set forth in the specifications of the peripheral device. Notice in the cabling that the Tx line of one end is connected to the Rx of the other. Many devices are designed to both send and receive data and use separate lines for the bidirectional communication. There are many modules which can be connected through the Serial Port. These include MP3 Players, Bluetooth transceivers, GPS Receivers, and even other Arduino boards.
Learn More Here: https://www.circuitbasics.com/basics-uart-communication/
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