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Eddy Current Linear Encoders:

Eddy current linear encoders detect the distance from a target by using magnetic fields generated by a reference and sensing coils.

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Kaman's SMT-9700 system uses proven inductive (eddy current) technology to provide extremely high-resolution noncontact position/displacement feedback of virtually any electrically conductive target. It is ideal for applications requiring high-resolution position...
Two precisely matched sensors per channel give resolution to a nanometer.

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