Capacity Theorem

The Capacity Theorem, often called the Shannon Capacity Theorem, states that a communication channel has a maximum data rate—called its capacity—at which information can be transmitted reliably without errors. This capacity depends on the channel’s bandwidth and noise level. If you send data below this limit, it's possible to do so with very few or no errors using proper encoding. Sending data above this limit increases the chance of errors. Essentially, it defines the upper limit of reliable data transfer over a given communication system, guiding how efficiently we can transmit information.