The most common and highly efficient type for short-to-medium distance, device-to-device communication, Modbus RTU uses binary encoding and transmits over serial interfaces like RS-485 or RS-232.
Wires: It uses serial cables, commonly RS-485 (2 wires twisted together).
Format: Data is sent in raw, compact binary format.
Upsides: Very cheap, very electric noise-resistant in factories, works in long distances (up to 1,200 m).
Format: Instead of raw binary, it translates data into readable ASCII characters.
Upsides: It is slower than RTU, but it's easier for humans to troubleshoot because you can read the raw text streams. It is rarely used in modern setups.
The Wire: Uses standard Ethernet cables (RJ45) and standard network switches.
The Format: It wraps the standard Modbus data packet inside a standard TCP/IP network packet.
Why it's used: It is blazing fast, allows multiple clients on the same network, and lets you connect industrial equipment directly to local IT networks or the internet.