The device you’re talking about is a ferrite bead. It acts as a kind of device called a “choke”, which serves to eliminate unwanted high-frequency signals that can cause undesired operation.
Basically, any length of wire, including a data cable, acts as an antenna, picking up stray electromagnetic interference (EMI). This interference can cause signals to appear on the cable that aren’t supposed to be there, which results in undesired operation- lost signals and data, intermittent operation, and so forth.
A ferrite bead choke acts as a low-pass filter that “chokes” the high-frequency EMI that is induced on the cable from external sources. This helps to reduce or eliminate unwanted interference from external EMI.
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