Instead of having wires running down you bike frame (eg. to the front wheel), you can now have all the sensors trasmitting their cycling data to your cycle computer using wireless signals.
However, for other cyclists of all types, it opens up new possibilities as it becomes a lot easier to get signals from several sensors without turning your bike into a mini wiring loom.
Plus with the more advanced cycle computer models you can get data from another bike, which can be excellent for training planning comparisons. (We certainly wouldn't reccommend linking 2 bikes with wires !!).
Depending on the model, the sensors transmit on a range of frequencies and the latest developments minimise interference from other wireless devices by using various techniques including multi-channel transmission that automatically avoids other local transmissions. This is particularly important when there are many competitive cyclists close together all using wireless cycle computers.
If you see wireless ID code mentioned, this is a system where the sensor and the computer are both programmed with the same ID code, so that tranmissions can be matched. That way, you don't get interference from other sensors in the vacinity.