Transition-minimized differential signaling
Transition Minimized Differential Signaling (or TMDS) is a standard that is used to transport uncompressed data to a digital device. This mode of tranmission is mainnly used for media data, such as images/video or sound. The data is digital. Electromagnetic interference is a big problem when transmitting data. Using digital signals instead of analogue ones, allows to reduce the impact of interference on the signal.
TMDS uses 8b/10b encoding. The code set is different from the original, developed by IBM. Encoding is a two stage process that uses XOR and XNOR gates. Whether to use XOR or XNOR operation is selected, so that the number ofsignal transitions is minimal; this is where the name is from.
S/PDIF is a similar standard, used in consumer audio equiment.