DLP projectors (Digital Light Processing), 

All DLP projectors have a DMD (Digital Micromirror Device) chip inside them covered with thousands of microscopic mirrors that allows light to come out in the right colors through a lens to project the image. 

By itself, the image that forms the DLP chip is seen in black and white. Two methods are usually used to produce color images: single-chip or three-chip. The latter uses one DMD for each primary color (red, green, blue) that converges optically to produce a single image. 

Single-chip DLP projectors alternate red, green and blue many times per second, creating a disorienting optical illusion called the "rainbow effect" that is particularly pronounced in images that have sharp edges between illuminated and dark areas, such as presentation slides. 

The difference between a DLP projector and an LCD projector is in the way the image is projected using a lamp light source. 

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