What is Direct Stream Digital?

Direct Stream Digital is a trademark used by Sony and Philips for their system for digitally encoding audio signals for the Super Audio CD.

DSD uses pulse-density modulation encoding - a technology to store audio signals on digital storage media which are used for the SACD. The signal is stored as delta-sigma modulated digital audio, which is a sequence of single-bit values at a sampling rate of 2.8224 MHz. Noise shaping occurs by use of the 64-times oversampled signal to reduce noise and distortion caused by the inaccuracy of quantization of the audio signal to a single bit. Therefore, it is a topic of discussion whether it is possible to eliminate distortion in one-bit delta-sigma conversion.