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https://i.imgur.com/u5SIvLo.png

I need to know what the little "thing" that i marked in blue is and how it works.

Thanks.

picture taken here: https://www.sparkfun.com/products/13282

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It's most likely a decoupling capacitor meant to smooth out the voltage supply to the internal control chip.

This is standard practice to add to any chip. Power cables create a small bit of parasitic inductance in relation to the area between the lines. This inductance can induce voltage spikes when current draw changes significantly. A capacitor shrinks the effective area between the power lines.

This is also why the general advice for decoupling capacitors is to put them as close to the chip as physically possible.

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It's a capacitor. Specifically a decoupling capacitor of somewhere around 100nF to 1uF.

It works by storing an electrical charge in two plates with a dielectric between them. That specific type is a Multi-Layer Ceramic Capacitor and looks to be 0603 in size.

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It's a capacitor connected between 5V and GND and it smooths out voltage spikes for a cleaner power supply to the chip. A cleaner power supply means the circuitry in the chip can more easily pick out the data signal (i.e., the reference voltage is more constant, so the actual signal appears more stage.)

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