The 3D format has had something of a renaissance in recent years, but 
the technology still has some way to go before the potential of 
"real-life" multiperspective 3D can be realized. The Camera Culture 
group at the MIT Media Lab is developing a new 3D video projection 
system that doesn't require glasses and provides different users 
different perspective angles of the same object. The team sees it not as
 a final answer, but as a transitional system that sits between current 
technologies and true holographic video.
 In one form or another, 3D projection systems have
 been around almost as long as the cinema itself. The trick has always 
been to come up with something practical and economical – preferably 
without the glasses, nausea, and headaches. Over the decades, the Bijous
 and Odeons of the world have seen two-color systems, polarized light 
systems, mechanical shutters and multiple projectors systems come and go
 as each fell short of the mark.
 The MIT approach was to come up with a glasses-free video projection 
system with a wide vision angle, ultra-high resolution, yet is 
mechanically simple and doesn't require elaborate installations, as well
 as being cheaper than conventional holographic systems of comparable 
quality. The idea is that it will act as a short term, intermediate 
solution until a more mature technology can be developed, while making 
it attractive as a transitional technology for users of more 
conventional 2D systems.
 The MIT system doesn't
 just produce an illusion of parallax – it creates an actual shift in 
perspective for multiple viewers looking at the image from different 
angles, as if were looking at real objects. In addition, it provides 
better resolution and contrast than conventional 2D video.
 The heart of the projector is a pair of flat panels of liquid-crystal 
modulators that act like tiny liquid-crystal displays (LCD) set between 
the backlight source and the lens. The first bank of LCDs produces light
 patterns at particular angles. This pattern passes through the second 
bank, but only at these angles. These then pass through a series of 
lenses that are arranged in the same manner as a Keplerian telescope.
 The patterns then pass through a transparent projection screen made up 
of lines of vertical lenses, a bit like the striated transparent sheets 
found in children’s books and toys that shift between a pair of images. 
These resolve the patterns into a 3D image that shifts as one moves from
 one of eight points of view to another.
 The modulators refresh the image 240 times every second, which is less 
than that of modern televisions, but ten times that of standard-speed 
film. The system requires a lot of bandwidth to work, but it also opens 
the possibility of the system displaying ultra-high resolution video. 
Part of the reason for this is that the MIT system uses data compression
 algorithms that concentrate on reproducing the edges of the images 
rather than the body of objects, because edges change more as an object 
moves or turns. The algorithm also produce a brighter image with 
stronger contrast by generating something closer to “true black,” which 
is not possible for LCDs.
 Another way the image is improved is by how the light patterns 
interfere with one another. By manipulating this, the system can gain 
higher resolutions, though this requires some prodigious real-time 
calculations. In addition, the MIT system doesn't simply enlarge the 
image, which reduces the field of vision in 3D projections. Instead, the
 system spreads out the pixels from one another.
 The team sees the technology as having applications in collaborative design and medical imaging as well as in entertainment.
 The video below explains the basics of the technology
 Source: MIT

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