The real world problem consists of taking a continuous signal (analog) and applying decisions by means of digital signal processing to the signal. A DSP allows for an efficient and cost effective means of allocating information (bandwidth, capacity) correctly. Consider a very basic digital transceiver design consisting of a receive path and a transmit path. In the Rx path, a continuous analog signal that represents some element of information is captured at a finite point in time. This signal could be represented as a voltage swing over time. The conversion step occurs when that voltage swing is converted to a digital representation. The resulting digital representation, or codes, can be processed to extract the information content within that signal. Depending on the particular characteristic of that information, certain decisions are made. The transmit path is the exact opposite where the data needs to be ‘delivered’ to a real world device.

