The spdif usb audio is really standard way of communicating digital signals. Spdif can also be considered to be a set of procedures that keeps everything compatible and working together. If you have either optical cable and digital coax, they can both use spdif. You can think of it as a sort of digital pipeline between electronic units regardless of the connecting cable.

Now through this digital pipeline, we can send many different digital signals such as PCM, DTS, dolby digital. A stereo pair is usually sent as PCM (which stands for Pulse Code Modulation). If you have a digital output by coax with an RCA connector, it easy to convert this to an optical signal known as a TOSLINK connector. TOSLINK was invented by Toshiba and is pretty much an industry standard optical cable connection.

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