MLT-3 encoding (Multi-Level Transmit) is a line code (a signaling method used in a telecommunication system for transmission purposes) that uses three voltage levels.
An MLT-3 interface emits less electromagnetic interference and requires less bandwidth than most other binary or ternary interfaces that operate at the same bit rate (see PCM for discussion on bandwidth / quantization tradeoffs), such as Manchester code or Alternate Mark Inversion.
Similar to simple NRZ encoding, MLT-3 has a coding efficiency of 1 bit/baud, however it requires four transitions (baud) to complete a full cycle (from low-to-middle, middle-to-high, high-to-middle, middle-to-low).
MLT-3 was first introduced by Crescendo Communications[1] as a coding scheme for FDDI copper interconnect (TP-PMD,[2] aka CDDI).
Later, the same technology was used in the 100BASE-TX physical medium dependent sublayer, given the considerable similarities between FDDI and 100BASE-[TF]X physical media attachment layer (section 25.3 of IEEE802.3-2002 specifies that ANSI X3.263:1995 TP-PMD should be consulted, with minor exceptions).