The old school, as it were, DC, is very simple and should be the choice of all beginners. DC works by providing power and direction to the trains on the layout by a wired controller. This controls the amount of power (which equals speed) by sending a current to the train on one track and back to the controller; this completes a circuit. Note however that it doesn't matter how many trains you use, all of them will go in the same direction on the track, no matter which way they face using DC.
DCC or Digital Command and Control allows multiple trains to be used on a layout, independent of each other by the use of coding a unique address to each train. A chip is mounted within the train itself with it's "signature" - the controller needs only to select that "signature" and it controls that train.
Prices for train engines are higher with DCC and can also come with digital sound effects, which are linked to the speed of the train - a REALLY cool feature! DC has the option as well with sound effect rolling stock or even using sound effect machines...but with sounds coming from the engine as opposed to a box...no comparision.
Note also that you should not run DC and DCC on the same line. DC runs a 12V and DCC at 16V and can cause serious issues and possible damage to the engines.
Which option you choose, the really important part is in the enjoying of your layout - if you are just starting out, stick with DC. If you are an old hand at model railroading, give DCC a look - just in the increased capabilities alone, it's worth your time.
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