Differential pulse-code modulation (DPCM) is a signal encoder that uses the baseline of pulse-code modulation (PCM) but adds some functionalities based on the prediction of the samples of the signal. The input can be an analog signal or a digital signal.
If the input is a continuous-time analog signal, it needs to be sampled first so that a discrete-time signal is the input to the DPCM encoder.
Applying one of these two processes, short-term redundancy (positive correlation of nearby values) of the signal is eliminated; compression ratios on the order of 2 to 4 can be achieved if differences are subsequently entropy coded, because the entropy of the difference signal is much smaller than that of the original discrete signal treated as independent samples.