A digital signal is a signal that is constructed from a discrete set of waveforms of a physical quantity so as to represent a sequence of discrete values.[8][9][10] A logic signal is a digital signal with only two possible values,[11][12] and describes an arbitrary bit stream. Other types of digital signals can represent three-valued logic or higher valued logics.
Alternatively, a digital signal may be considered to be the sequence of codes represented by such a physical quantity.[13] The physical quantity may be a variable electric current or voltage, the intensity, phase or polarization of an optical or other electromagnetic field, acoustic pressure, the magnetization of a magnetic storage media, etc. Digital signals are present in all digital electronics, notably computing equipment and data transmission.
With digital signals, system noise, provided it is not too great, will not affect system operation whereas noise always degrades the operation of analog signals to some degree.
Digital signals often arise via sampling of analog signals, for example, a continually fluctuating voltage on a line that can be digitized by an analog-to-digital converter circuit, wherein the circuit will read the voltage level on the line, say, every 50 microseconds and represent each reading with a fixed number of bits. The resulting stream of numbers is stored as digital data on a discrete-time and quantized-amplitude signal. Computers and other digital devices are restricted to discrete time.