Shannon's Theory, developed by Claude Shannon in 1948, is a foundational concept in information theory. It quantifies the amount of information that can be transmitted over a communication channel, focusing on the efficiency and reliability of data transfer. The theory introduces key concepts such as entropy, which measures uncertainty, and redundancy, which helps in error correction. The theory also emphasizes the importance of encoding messages to maximize transmission efficiency. By using mathematical models, Shannon's Theory provides a framework for understanding how information can be compressed and transmitted, influencing various fields like telecommunications, computer science, and data compression techniques.