History
DSD is a method of storing a Delta-Sigma signal before applying a "decimation" process that converts the signal to a PCM signal. When Delta-Sigma conversion was originally described in patent 2,927,962 filed by C. C. Cutler in 1954 (But not named as such until a 1962 paper by H. Inose, Y. Yasuda, and J. Murakami), decimation did not exist and the intention was to have oversampled data sent as-is. Indeed, the first proposal to decimate oversampled delta-sigma data to convert it in to PCM audio did not appear until 1969, in D. J. Goodman's paper "The Application of Delta Modulation of Analog-to-PCM encoding".
Read more about this topic: Direct Stream Digital
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