CCommunity
In digital data transmission, the transmitted bit undergoes attenuation with the distance.
Also, the effect of noise may alter the voltage levels of the transmitted bit
Thus, a threshold voltage is set at the receiver to decide whether the received bit is 0 or 1
Example:
Suppose the voltage level of transmitted bit for logic 1 is 5V
And for logic 0 is 0 V
Now threshold Voltage is set at 2.5 V
If the received voltage level is greater than 2.5 V bit is decoded as 1 else 0