The device itself is small and can be clipped on to one's clothes. It contains a motion sensor similar to the ones found in the Nintendo Wii controller.
It is capable of sensing motion in three dimensions and converts the data tracked into information about user's daily activities.
FitBit actually measures the intensity and duration of the physical activities, calories burned, steps taken, distance traveled, how long it took to fall asleep, number of times the user woke up through the night and how long they were actually asleep versus just lying in bed.
When the user passes by a wireless base station the device transmits all the collected data to the website where it is processed.
Source: Techtree.com
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