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Amongst the building blocks of a GPS Time and Frequency solution the oscillator is a key component<ref name="autogenerated2"/> and typically they are built around an Oven Controlled Crystal Oscillator ([[Crystal oven|OCXO]]) or a [[Rubidium standard|Rubidium based clock]]. The dominant factors influencing the quality of the reference oscillator are taken to be aging and temperature stability. However, depending upon the construction of the oscillator, barometric pressure and relative humidity can have at least as strong an influence on the stability of the quartz oscillator. An addition of a Microprocessor to the reference oscillator can improve temperature stability and aging performance<ref>{{cite web|url=http://ieeexplore.ieee.org/xpl/freeabs_all.jsp?arnumber=4622980 |title=IEEE Xplore - Improvements in OCXO performance by the use of an on-board microprocessor |doi=10.1109/FREQ.2008.4622980 |publisher=Ieeexplore.ieee.org |date= |accessdate=2012-09-28}}</ref> During Holdover any remaining clock error caused by aging and temperature instability can be corrected by control mechanisms.<ref>{{cite paper|url=http://kunz-pc.sce.carleton.ca/thesis/CrystalOscillators.pdf |title=Frequency Accuracy & Stability Dependencies of Crystal Oscillators |author=Hui Zhou, Charles Nicholls, Thomas Kunz, Howard Schwartz |publisher= |date=November 2008 |accessdate=2012-10-21}}</ref> A combination of quartz based reference oscillator (such as an [[Crystal oven|OCXO]]) and modern correction algorithms can get good results in Holdover applications.<ref name="Lombardi">{{cite paper|url=http://tf.nist.gov/general/pdf/2297.pdf |title=The Use of GPS Disciplined Oscillators as Primary Frequency Standards for Calibration and Metrology Laboratories |author=Michael A. Lombardi |publisher=NCSL International |date=September 2008 |accessdate=2012-10-21}}</ref>
The Holdover capability then is provided either by a free running local oscillator, or a local oscillator that is steered with software that retains knowledge of its past performance.<ref name="Lombardi"/> The earliest documentation of such an effort comes from the then NBS in 1968 [Allan, Fey, Machlan and Barnes, "An Ultra Precise Time Synchronization System Designed By Computer Simulation", Frequency], where an analog computer consisting of ball-disk integrators implemented a third order control loop to correct for the frequency ageing of an oscillator. The first microprocessor implementation of this concept occurred in
Once the barriers of aging and environmental effects are removed the only theoretical limitation to holdover performance in such a GPSDO is irregularity or noise in the drift rate, which is quantified using a metric like [[Allan deviation]] or [[Time deviation]].<ref>http://www.leapsecond.com/pages/adev/adev-why.htm</ref>{{Unreliable source?|date=October 2012}}
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