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The Digital Signal

All data that a computer processes must be encoded digitally, as a series of zeroes and ones. Internally, computers are digital because they consist of discrete units called bits that are either on or off. But by combining many bits in complex ways, computers simulate analog events. (Analog is a term for information being used in its original form). An input device such as a phone set takes an acoustic signal (which is a natural analog signal) and converts it into an electrical equivalent in terms of volume (signal amplitude) and pitch (frequency of wave change). Since the telephone company’s signaling is already set up for this analog wave transmission, it's easier for it to use that as the way to get information back and forth between your telephone and the telephone company

Because analog transmission only uses a small portion of the available amount of information that could be transmitted over copper wires, the maximum amount of data that you can receive using ordinary modems is about 56 Kbps (thousands of bits per second) as bits and bytes stored in electronic memory, similar to facts stored in a person's mind.

Distinct pieces of information are usually formatted in a special way. All software is divided into two general categories: data and programs. Programs are collections of instructions for manipulating data. Data can exist in a variety of forms -- as numbers or text on pieces of paper. The term data is often used to distinguish binary machine-readable information from textual human-readable information. For example, some applications make a distinction between data files (files that contain binary data) and text files (files that contain ASCI data). In database management systems, data files are the files that store the database information, whereas other files, such as index files and data dictionaries, store administrative information, known as metadata.

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