Shannon's Theorem, developed by Claude Shannon, is a fundamental principle in information theory that defines the maximum rate at which information can be transmitted over a communication channel without error. This rate is known as the channel capacity and depends on the bandwidth of the channel and the level of noise present. Essentially, it tells us how much information can be sent reliably, guiding engineers in designing efficient communication systems. The theorem also highlights the importance of encoding information properly to minimize errors. By using techniques like error correction codes, we can approach the channel capacity, ensuring that messages are transmitted accurately even in noisy environments. This has profound implications for modern communication technologies, including telecommunications and data transmission.