Question

What is Shannon’s Capacity?

Answer 1

Shannon information capacity C has long been used as a measure of the goodness of electronic communication channels. It specifies the maximum rate at which data can be transmitted without error if an appropriate code is used (it took nearly a half-century to find codes that approached the Shannon capacity).

Two theoretical formulas were developed to calculate the data rate: one by Nyquist for a noiseless channel, another by Shannon for a noisy channel.Shannon Capacity –
In reality, we cannot have a noiseless channel; the channel is always noisy. Shannon capacity is
used, to determine the theoretical highest data rate for a noisy channel:

Capacity = bandwidth * log2(1 + SNR)

In the above equation, bandwidth is the bandwidth of the channel, SNR is the signal-to-noise ratio, and capacity is the capacity of the channel in bits per second.
Bandwidth is a fixed quantity, so it cannot be changed. Hence, the channel capacity is directly proportional to the power of the signal, as SNR = (Power of signal) / (power of noise).

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