Banding is a graphical issue that presents itself when viewing smooth gradients of color. If, for example, you were to open up Photoshop and create a gradient of black to white, you would expect to see the color changing smoothly from black to white as your eyes move across the screen. When you view this gradient on a monitor that has banding issues, however, you won't see a smooth transition between colors, instead, you will see discrete steps in the color.
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