This lecture explores the impact of quantization on networked control systems, focusing on data-rate limitations and the trade-off between quantization accuracy and communication efficiency. The instructor discusses the challenges of coding real-valued vectors into finite bits for transmission, analyzing stability and performance implications. Key topics include the effect of quantization on closed-loop dynamics, the design of stabilizing controllers, and the fundamental trade-off in network design. Through examples and graphical methods, the lecture illustrates how quantization affects system behavior and control strategies in the context of wireless networks and low-bandwidth communication channels.