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What is the difference between "Hz" and "bps"?

What is the difference between "Hz" and "bps"? Is that Hz refers to time domain and bps refers to frequency domain?

The difference between Hz (Herz) and bps (bits per second) is both a simple distinction and a complicated one. So I'll try to keep it on the simple side: Hz applies to a clock frequency that is used to modulate the electrical signal on the wire (assuming copper). The higher the rate of modulation (Hz), the more information that can be transmitted per second. It is fundamental to the operation of the communication interface but it doesn't tell the most useful story. In the early days of modems, the rate of modulation was typically referred to as "baud." Baud used to be synonymous with bps – however encoding techniques have evolved considerably and the relationship has changed. Bps is typically different from the modulation rate and is primarily important with respect to data transfer rates.  

This was first published in August 2003

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