The liquid crystal display or LCD technology uses small, liquid and rotating crystals. Better versions even contain three LCDs: one for each colour red, green and blue. There are two types of LCD panels in circulation: the passive STN types and the more popular, active TFT types.
Pros and cons:
+ Brighter, sharper and more natural colours
+ Improved contrast compared to earlier models: 10,000:1
+ LCD has low power consumption, ideal for portable devices
+ No rainbow effect
- Grid between LCD panels is more visible
NB: Can be remedied by defocussing slightly the projector.