A digital compass uses microelectromechanical structures fabricated inside an IC to find the direction of Earth's magnetic field. The signals are directly converted to digital form by inbuilt circuitry inside the IC. These compasses are used in smartphones etc.
An analog compass is a compass that uses a piece of magnetic iron to find the direction of the magnetic field. The piece aligns with the magnetic field which gives the direction of the magnetic field.
In the electrical compass, the magnetic field produced due to a current flowing through a conductive rod is used to find the magnetic field of the Earth.
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