Manchester coding's data rate is only half that of a non-coded signal, which limits its usefulness to systems where bandwidth is not an issue, such as a local area network (LAN).
[3] Manchester encoding introduces difficult frequency-related problems that make it unsuitable for use at higher data rates.
[3][4] There are more complex codes, such as 8B/10B encoding, that use less bandwidth to achieve the same data rate but may be less tolerant of frequency errors and jitter in the transmitter and receiver reference clocks.
The existence of guaranteed transitions allows the signal to be self-clocking, and also allows the receiver to align correctly; the receiver can identify if it is misaligned by half a bit period, as there will no longer always be a transition during each bit period.
The price of these benefits is a doubling of the bandwidth requirement compared to simpler NRZ coding schemes.
Encoding conventions are as follows: This article incorporates public domain material from Federal Standard 1037C.