Chapter 2 is dedicated to the principle of signal orthogonalization, because orthogonal signals are widely used in telecommunication theory and practice, like the carriers of baseband signals, subcarriers in orthogonal frequency division multiplexing systems, and the spreading sequences in spread-spectrum and code division multiple access (CDMA) systems. The orthonormal basis functions are defined and the procedure of the vector representation of signals is demonstrated. The Gram–Schmidt orthogonalization procedure and construction of the space diagram are presented in detail. Using orthonormal signals, signal synthesizers and analysers that can be used to form discrete-time transmitters and receivers are theoretically founded. Understanding of this chapter is a prerequisite for understanding Chapters 4–10, because the orthonormal signals defined in this chapter will be used throughout the book. The basis harmonic orthonormal functions will define the carriers in the discrete and digital communication systems.