Channel capacity refers to the maximum amount of information that can be transmitted over a communication channel without error. It is a crucial concept in information theory, introduced by Claude Shannon, who established the mathematical foundation for understanding how data can be efficiently sent and received. The capacity is influenced by factors such as bandwidth, signal-to-noise ratio, and the type of encoding used. In practical terms, channel capacity helps engineers design systems that optimize data transmission, ensuring that messages are delivered accurately and quickly. For example, in wireless communication, understanding channel capacity allows for better use of available frequencies, leading to improved performance in devices like smartphones and routers.