Introduction
The name "baud" is from Emile Baudot, a French engineer who devised the 5-bit teletype code. The amount of signal or symbol changes per second is the baud rate. In Other Words, The baud rate is the rate at which information in a communication channel is conveyed.
People frequently mix up baud and bit rates, even though they are fundamentally different. Depending on the encoding system employed, the baud rate might be greater or lower than the bit rate (Such as NRZ, Manchester, etc.).
Baud Rate
The amount of signal or symbol changes per second is the baud rate. When describing electronics that employ serial transmission, the term baud rate is frequently used. In the context of a serial port, "9600 baud" denotes that the serial port can send a maximum of 9600 bits per second.
Importance
1. The bandwidth required for signal transmission may be determined by the baud rate.
2. A communication channel's Baud rate is also used to calculate its Bit rate.
3. It is a signal transmission tuning parameter (i.e., it modulates Network congestion in data networking).
4. It defines how quickly data may be transmitted via a serial line or serial interface (an interface that transmits data as a sequence of bits over a single wire).
Usage
Historically, telephone modems were perhaps the most typical site where baud rate was encountered–and misunderstood. These devices will encrypt digital signals for transmission over a terrestrial phone connection by 2021. These modems may be identified by their baud rates and their bit rates, which are often stated in kbps, or kilobits per second. Early modems, such as the Bell 103 and later Bell 202, had bit rates proportional to their baud rate. The 202, for example, had a 1400 baud rate and a bit rate of 1400 bits per second (1.4 kbps). Later modems, on the other hand, would use technologies that allowed several bits to be transferred on each signaling occurrence.
For example, modems adopting the V.32 standard could encode 4 bits per signaling event and operate at 2400 baud. This results in a bit rate of 9.6 kbps. Telephone modems may achieve a theoretical data rate of 56 kbps using several approaches and an enhanced baud rate of 8000. These speeds were typically lower due to numerous communication difficulties, but they nevertheless represented a significant advance over predecessors. The baud rate may be considered the "floor" bit rate. However, it is far from the upper limit. Multi-bit signaling was critical to the flow of information in a world where land-based telephone connections constrained the baud rate.
The same idea applies to modern RF applications, which employ a limited frequency range to transfer data over the airways. One obvious use is WiFi, where various modulation methods allow for greater speeds while still adhering to physical laws (and the FCC). Consider the original IEEE 802.11 specification, which called for a rate of 2Mbit/s. Subsequent versions strengthened the standard, and today we have IEEE 802.11ax, which can reach up to 11 Gbit/s.
Also see, Difference Between Verilog and Vhdl