Shannon's Capacity Theorem, formulated by Claude Shannon in 1948, defines the maximum rate at which information can be reliably transmitted over a communication channel. This rate, known as channel capacity, is determined by the bandwidth of the channel and the level of noise present. The theorem establishes a fundamental limit, indicating that if the transmission rate is below this capacity, error-free communication is possible, while rates above it will result in errors. Shannon's theorem laid the foundation for modern information theory and telecommunications.
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