An LCD or liquid crystal display is a type of flat panel display commonly used in digital devices, for example: digital clocks, appliance displays, and portable computers.
How an LCD Works
According to a PC world article, liquid crystals are liquid chemicals whose molecules can be aligned precisely when subjected to electrical fields, much in the way metal shavings line up in the field of a magnet. When properly aligned, the liquid crystals allow light to pass through.
A simple monochrome LCD display has two sheets of polarizing material with a liquid crystal solution sandwiched between them.
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