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Data communication refers to the transfer of information from one computer to another through the network, or any other type of medium. The data can range from simple audio file to an SMS message. The data can be sent wirelessly or by wired medium. For two computers to communicate with one the other, they require an approach to linking which is called a network or channel.

Modern networks for data communication use different data transmission channels. There are three kinds of data transmission channels: simplex, full-duplex, and duplex. Simplex mode allows data to flow only in one direction, while duplex mode allows the sender and receiver to both transmit simultaneously. Full-duplex mode is comparable to duplex, but it demands that the receiver and transmitter be synchronized in order for them to correctly read individual binary data bits from the transmitted signal.

Information that is transmitted using a data communication channel may be digital messages sent by a microprocessor, or an analog signal (such as telephone calls or a video) that has been converted into digital using pulse-code modulation. Any errors in the transmission of data must be detected and rectified to ensure that only the correct information is received by the receiver at the other end. This is typically done using a combination of sequence numbers and acknowledgement codes.