Understanding EDID - What does it mean?

EDID data exchange is a standardized means for a display to communicate its capabilities to a source device. The premise of this communications is for the display to relay its operational characteristics, such as its native resolution, to the attached source, and then allow the source to generate the necessary video characteristics to match the needs of the display. This maximizes the functional compatibility between devices without requiring a user to configure them manually, thus reducing the potential for incorrect settings and adjustments that could compromise the quality of the displayed images and overall reliability of the system.