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This lecture covers the concept of Binary Coded Modulation (BCM) used in LED displays, explaining the Pulse Width Modulation (PWM) on a matrix, tolerance on signal shape, BCM principle, advantages, and limitations. It also delves into programming BCM signals and provides examples of signal representation. The advantages of BCM over PWM lie in the reduced number of state refreshes required, allowing for more efficient use of time and resources in LED display applications.