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I have some Bluvision Beeks beacons equipped with temperature sensors. I can adjust their transmit powers. I am wondering if setting a higher transmit power for a particular beacon will result in a better sensor reading than if the beacon were set to a lower transmit power in general. Or is higher transmit power only provided in order to achieve a longer range?

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Bluetooth (and pretty much every other transmission protocol in contrast to sensors like radar) are based on digital protocols. This means that the signals are both binary, and protected by error detection/correction codes.

So long as the signal is strong enough that there are only a few errors in any one packet, the resulting sensor reading which is sent will not change. Specifically in the case of BLE, there is no error correction overhead in the packets, just a CRC. Any received packet which is errored will not be acknowledged. This causes the packet to be re-sent (so increasing latency as a trade-off for improved typical throughput). (from here, as per @Aurora0001)

More power can sometimes cause problems, where you have lots of sensors sharing the same band.

Sean Houlihane
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