A capsule neural network focuses on the replication of biological neural networks to perform better recognition and segmentation. They are a type of Artificial Neural Network. They have a nested layer under one layer of the capsule neural networks, that’s what the word ‘capsule’ indicates.
The capsules in these networks determine the parameters of an object’s features. Suppose your capsule networks have to identify a face. The capsules will focus on determining whether the specific facial features are present or not. They aren’t restricted to this alone. They will also check how the features of the particular face are organized. So, your system can identify a face only when the capsules determine that the elements of that face are in the right order.
You might wonder, how do they determine the order of those features? These networks can do so because of the input you give them. When they have examined hundreds (or even thousands) of images, they can perform this task efficiently.