Analog signals: continuous with infinitely many levels
Digital signals: discrete with finite levels

Encoding data in binary as voltages that can be transmitted over wires.
| Encoding Method | Illustration |
|---|---|
| NRZ | ![]() |
| RZ | ![]() |
| Manchester | ![]() |
Represented as wave, e.g. sine wave
\[A\sin(2\pi ft + \phi)\]Bandwidth: The difference between the highest and lowest frequency that can pass through a channel
Signal to Noise Ratio: The strength of signal over noise.

At the signal receiver side, the signal is sent to a sort of comparator circuit as shown above.
Shannon Channel Capacity: The theoretical maximum bit rate of a noisy channel
\[C = B \log (1 + \text{SNR})\]Modem: Modulator/Demodulator