Differential signals are made up of pairs of balanced signals moving about a reference point at equal but opposite amplitudes. The composite differential signal corresponds to the difference between the positive and negative balanced signals. For example, from two 1 volt peak to peak signals, the result is a composite signal of 2 volts peak to peak . In this instance, if an error source is introduced to the differential signal path, it will likely be added to each of the two balanced signals equally. Because the return path is not a constant reference point, the differential signal will be unaffected once the difference of the two balanced signal components cancels out the error, which typically is equal in amplitude on each signal transition. For this reason the balanced signal is less prone to noise and interferences than the unbalanced signal would be. Also, as will be discussed, balanced signals have lower distortion than single ended circuits.
 
                 
                 
                 
 
 
 
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