Low-voltage signals have many advantages, including fast bit rates, lower power, and better noise performance. LVDS increases these advantages by lowering voltage swings to about 300 mV. To increase noise immunity and noise margins even further, LVDS uses differential data transmission.
Differential signals are immune to common-mode noise, the primary source of system noise.
Because its voltage change between logic states is only 300 mV, LVDS can change states very fast. An LVDS signal also changes voltage levels without a fast slew rate. Slowing the transition rate decreases the radiated field strength. Slower transitions reduce the problem of reflections from transmission-path impedance discontinuities, decreasing emissions and crosstalk problems. Low-voltage swing reduces power consumption because it lowers the voltage across the termination resistors and lowers the overall power dissipation.