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Direct Stream Digital (DSD) is a trademark used by Sony and Philips for their system for digitally encoding audio signals for the Super Audio CD (SACD).
DSD uses pulse-density modulation encoding - a technology to store audio signals on digital storage media which are used for the SACD. The signal is stored as delta-sigma modulated digital audio, which is a sequence of single-bit values at a sampling rate of 2.8224 MHz (64 times the CD audio sampling rate of 44.1 kHz, but only at of its 16-bit resolution). Noise shaping occurs by use of the 64-times oversampled signal to reduce noise and distortion caused by the inaccuracy of quantization of the audio signal to a single bit. Therefore, it is a topic of discussion whether it is possible to eliminate distortion in one-bit delta-sigma conversion.