How your laptop talks to the Raspberry Pi
Your laptop finds smartobjects1.local on the network using mDNS (Bonjour). Translates the name to an IP address like 192.168.1.42.
Opens a network connection on port 22 (SSH's default port). Like dialing a phone number — establishing the line before talking.
Both machines agree on encryption. The Pi proves its identity with a host key. This is why you see "fingerprint" the first time. All future traffic is encrypted.
You prove you're allowed in — either with a password (type it) or an SSH key (automatic). Keys are like a building fob: no typing required.
The Pi starts a shell (bash) for you. Your prompt changes to smartobjects@smartobjects1:~$. Every keystroke travels through the encrypted tunnel.