H(p) = −p log₂p − (1−p)log₂(1−p)
C = 1 − H(p) bits/use
I(X;Y) = H(Y) − H(p)
Shannon limit: R < C
BSC: each bit flipped with prob p, independent. Shannon 1948: reliable communication possible iff R < C = 1−H(p). At p=0.5: complete noise, C=0. At p=0: noiseless, C=1 bit/use. Capacity curve (gold), mutual information for given input bias (green). Bottom: simulated block transmission.