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A parity bit is a bit that is added to a group of source bits to ensure that the number of set bits (i.e., bits with value 1) in the outcome is even or odd. It is a very simple scheme that can be used to detect single or any other odd number (i.e., three, five, etc.) of errors in the output.
For a given set of bits, if the count of bits with a value of 1 is even, the parity bit value is set to 1 making the total count of 1s in the whole set (including the parity bit) an odd number. If the count of bits with a value of 1 is odd, the count is already odd so the parity bit's value is 0.
The code-rate of a given ECC system is defined as the ratio between the number of information bits and the total number of bits (i.e., information plus redundancy bits) in a given communication package.
Parity has a distance of 2, so one bit flip can be detected but not corrected, and any two bit flips will be invisible. The (3,1) repetition has a distance of 3, as three bits need to be flipped in the same triple to obtain another code word with no visible errors. It can correct one-bit errors or it can detect - but not correct - two-bit errors.
Hamming's (7,4) algorithm can correct any single-bit error, or detect all single-bit and two-bit errors. In other words, the minimal Hamming distance between any two correct codewords is 3, and received words can be correctly decoded if they are at a distance of at most one from the codeword that was transmitted by the sender.
The parity bit may be used within another constituent code. In an example using the DVB-S2 rate 2/3 code the encoded block size is 64800 symbols (N=64800) with 43200 data bits (K=43200) and 21600 parity bits (M=21600). Each constituent code (check node) encodes 16 data bits except for the first parity bit which encodes 8 data bits.