Generally speaking, digital signals must be discrete in time and amplitude, while analog signals are continuous in amplitude. To convert analog signals into binary digital signals, they must generally go through three processes: sampling, quantization, and encoding. The same is true for pulse code modulation (PCM). Sampling is the process of converting an analog signal that is continuous in both time and amplitude into another analog signal that is discrete in time and continuous in amplitude. This analog signal is also called a pulse amplitude modulation (PAM) signal. In order for the sampled PAM signal to be restored to the original signal without distortion at the receiving end, the sampling period should satisfy the Nyquist theorem. Quantization is the process of discretizing the amplitude of the continuous amplitude sample value (also called stratification) to convert the continuous amplitude analog PAM signal into a multi-bit digital signal. Since binary signals are used in common digital communication systems and computers, multi-bit digital signals are further binary-encoded to ultimately become binary digital signals.
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