In this paper, an overview of Direct Stream Digital (DSD) signal processing is given. It is shown that 1-bit DSD signals can be dithered properly, so the resulting dithered DSD stream does not contain audible artifacts in a band from 0-100~kHz. It is also shown that signal processing can be done best in a high rate, multi-bit domain. Arguments are given that the minimal frequency span needed to comply with the human auditory system is roughly 0-300~kHz. Following the signal processing, final conversion to DSD is made. It is demonstrated that Super Audio CD (SACD) is a very efficient consumer format: it is the format which, while maintaining all necessary psycho-acoustical characteristics such has high band width, filtering with wide transition bands etc, uses the least bits from the disk; hence offering the longest playing time.
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