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Liquid crystal displays are based on the ability of liquid crystals to rotate light, especially when in the twisted nematic or cholesteric phase. The liquid crystal components are placed between two flat pieces of glass, allowing LCDs to be much lighter and thinner than displays using a traditional cathode-ray tube. LCDs also run on much less power than traditional displays. Most LCDs utilize the twisted nematic phase of liquid crystals between two polarizers with perpendicular orientation.

When ordinary light is sent through a vertical polarizer, only the light that is in the same direction as the slits in the polarizer will pass through. Therefore, the light leaving is all in the same direction. When this polarized light passes through the second (horizontal) polarizer, it will not be able to pass through. In an LCD, a layer of liquid crystal is between these polarizers and, when in its twisted phase, rotates the polarized light 90 degrees, directing it through the second polarizer, which is horizontal. Only the rotated light can be reflected back and appear bright on the screen of the watch, thermometer, or computer screen. When the electric field on the liquid crystal changes, the liquid crystal substance changes its orientation and can be made to align with the incoming light, so it will not rotate the vertically polarized light and the light will not be able to pass through the second polarizer; thus that screen or area of the screen will appear dark. Changing which circuits receive electricity controls which portions of the display are light and dark, creating an image.

The proper function of an LCD depends on the reaction of the liquid crystal material to the input of current. Addressing is the term that describes how the electrical current is supplied to the LCD. Direct addressing means that each individual pixel requires its own circuit so that it is either on or off. Most watches and calculators utilize direct addressing. The display of each number depends on which area is lit. For example, a number 3 on a calculator is simply a number 8 without two of the pixels lit. Direct addressing works fine for simpler systems, but when the screens get larger and the number of pixels involved increases, it is difficult for each pixel to have its own circuit. Multiplex addressing prevents this problem: each pixel is referenced by its row and column rather than run by its own circuit. . .

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