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It is perfectly viable with silicon. The venerable Fast Ethernet used PAM3, as do USB4 and GDDR7, and Gigabit Ethernet uses PAM5.


Those are analog systems, and thus you have to handle them with transistors operating in a linear mode, which is why there are dedicated circuits to handle the interface and translate it back into something binary as soon as possible, so that conventional logic can use the data.

Basically, every ethernet card is now a modem.




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