Analog Signal
An analog signal is time-varying and generally bound to a range (e.g. +12V to -12V), but there is an infinite number of values within that continuous range. An analog signal uses a given property of the medium to convey the signal’s information, such as electricity moving through a wire. In an electrical signal, the voltage, current, or frequency of the signal may be varied to represent the information. Analog signals are often calculated responses to changes in light, sound, temperature, position, pressure, or other physical phenomena.
When plotted on a voltage vs. time graph, an analog signal should produce a smooth and continuous curve. There should not be any discrete value changes

Digital Signal
A digital signal is a signal that represents data as a sequence of discrete values. A digital signal can only take on one value from a finite set of possible values at a given time. With digital signals, the physical quantity representing the information can be many things:
Variable electric current or voltage
Phase or polarization of an electromagnetic field
Acoustic pressure
The magnetization of a magnetic storage media
Digital signals are used in all digital electronics, including computing equipment and data transmission devices. When plotted on a voltage vs. time graph, digital signals are one of two values, and are usually between 0V and VCC (usually 1.8V, 3.3V, or 5V)

Messages
Digital messages are constructed with a finite number of symbols. For example, a text file is a digital message constructed from 50 symbols, consists of 26 letters, 10 numbers, a space and several punctuation marks. Similarly, a Morse-coded telegraph is a binary message, implying only two symbols – mark and space.
Analog messages are characterized by data whose values vary over a continuous range. For example, a speech waveform has amplitudes that vary over a continuous range. A picture is also an analog message.
Noise immunity of digital signals
Noise immunity of digital signals – digital data can be recovered without any error as long as the distortion and noise are within limits. On the other hand, for an analog message, even a slight distortion or interference in the waveform will cause an error in the received signal.
Regenerative repeaters––Based on this “noise immunity”, when transporting a bit stream over a long distance, regenerative repeaters or repeater stations are placed along the path of a digital system at distances short enough to ensure that noise and distortion remain within a limit. The viability of regenerative repeaters is the main reason for the superiority of digital systems over analog ones.
Every possible communication can be carried on with a minimum of two symbols, i.e., by using a proper binary sequence. In the last 20 years, digital communication gradually replace its analog competitors, and the revolution is now nearly complete.

Sampling Theorem: A meeting ground exists for analog and digital signals: conversion of analog signals to digital signals. The backbone that supports the interface is Shannon's Sampling Theorem, which states that if the highest frequency in the signal spectrum is B (in hertz), then the signal can be recovered from its samples, taken at a rate not less than 2B samples per second.
Quantization: each sample is approximated, or round off to the nearest quantized level, the information is thus digitalized. The quantized signal is an approximation of the original one. We can improve the accuracy of the quantized signal to any desired degree by increasing the number of levels. Coding Source coding Convert the quantized signal into binary sequences.
Channel coding: Introduce redundancy in a controlled manner to overcome the effects of noise and interferences. Mapping Map binary sequence into symbols.
Transmission Symbols are applied to a transmitter filter, which produces a continuous signal for transmission over a continuous channel.
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