Its operation is based on persistence of vision principle: you can drive one digit at time, so you must drive each digit at a speed so that human eye cannot perceive power off moments.
When using 4-digit 7-segment display, please notice that if it is common anode, the common anode pin connects to the power source; if it is common cathode, the common cathode pin connects to the GND. This guide is based on cathode one, nut anode works with the same code by inverting digit selection logic.
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