A system and method are provided for transmission of data bits across a data bus. To reduce power usage, noise, or some combination of the two, the data bus utilizes differential transmission using a three level signal in which a reference signal signifies no difference between input bits. Before the signals are transmitted an analysis is made to choose which one of a set of predetermined polarity reversal combinations is advantageous to encode the data bits. The data bits are so encoded and a formatting value F associated with the chosen polarity reversal is differentially transmitted with the encoded bits over the data bus. The three level differential signal is received at the far end of the bus, the encoded bits are recovered and decoded with use of F. The system and method achieves up to N bits transmitted per N data lines.