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Digital signals have discrete values while analog signals have continuous values with time. |
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Signals inside the computers are digital but on the communication media can be analog or digital. |
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One of the most important functions of the physical layer is encoding the data and taking care of transmitting/receiving it over the communication media. |
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Other functions of the physical layer include defining the hardware/software specifications of the cables, connectors, network interface cards, and other hardware devices. |