RTDs are completely passive sensing elements, requiring the application of an externally sourced electric current to function as temperature sensors. However, thermocouples, generate their own electric potential. In some ways, this makes thermocouple systems simpler because the device receiving the thermocouple’s signal does not have to supply electric power to the thermocouple. It also makes thermocouple systems potentially safer than RTDs in applications where explosive compounds may exist in the atmosphere because the power levels generated by a thermocouple tend to be less than the power levels dissipated by an RTD. The self-powering nature of thermocouples also means they do not suffer from the same “self-heating” effect as RTDs.
In other ways, however, thermocouple circuits are more complex and troublesome than RTD circuits because the generation of voltage occurs in two different locations within the circuit, not simply at the sensing point. This means the receiving circuit must “compensate” for temperature in another location to accurately measure temperature in the desired location. Though typically not as accurate as RTDs, thermocouples are more rugged, have greater temperature measurement spans, and are easier to manufacture in different physical forms.
Dissimilar metal junctions: When two dissimilar metal wires are joined together at one end, a voltage is produced at the other end that is approximately proportional to temperature. That is to say, the junction of two different metals behaves like a temperature-sensitive battery. This form of an electrical temperature sensor is called a thermocouple:

This phenomenon provides us with a simple way to electrically infer temperature. simply measure the voltage produced by the junction, and you can tell the temperature of that junction. And it would be that simple, if it were not for an unavoidable consequence of electric circuits, when we connect any kind of electrical instrument to the thermocouple wires, we inevitably produce another junction of dissimilar metals. The following schematic shows this fact, where the iron-copper junction J1 is necessarily complemented by a second iron-copper junction J2 of opposing polarity:

Junction J1 is a junction of iron and copper – two dissimilar metals – which will generate a voltage related to temperature. Note that junction J2, which is necessary for the simple fact that we must somehow connect our copper-wired voltmeter to the iron wire, is also a dissimilar-metal junction that will also generate a voltage related to temperature. Further note how the polarity of junction J2 stands as opposed to the polarity of junction J1 (iron = positive; copper = negative). A third junction (J3) also exists between wires, but it is of no consequence because it is a junction of two identical metals which does not generate a temperature-dependent voltage at all.
The presence of this second voltage-generating junction (J2) helps explain why the voltmeter registers 0 volts when the entire system is at room temperature: any voltage generated by the iron copper junctions will be equal in magnitude and opposite in polarity, resulting in a net (series-total) voltage of zero. Only when the two junctions J1 and J2 are at different temperatures will the voltmeter register any voltage at all.
We may express this relationship mathematically as follows: Vmeter = VJ1 − VJ2
With the measurement (J1) and reference (J2) junction voltages opposed to each other, the voltmeter only “sees” the difference between these two voltages. Thus, thermocouple systems are fundamentally differential temperature sensors. That is, they provide an electrical output proportional to the difference in temperature between two different points. For this reason, the wire junction we use to measure the temperature of interest is called the measurement junction while the other junction (which we cannot eliminate from the circuit) is called the reference junction (or the cold junction, because it is typically at a cooler temperature than the process measurement junction).
We know that a dissimilar-metal junction creates a voltage with temperature. We also know that to make a complete circuit with iron and copper wire, we must form a second iron-copper junction, the polarity of this second junction is necessarily opposed to the first. If we call the first iron-copper junction J1 and the second J2, we absolutely must conclude that the net voltage read by a voltmeter in this circuit will be VJ1 − VJ2.
Different types of thermocouples: Thermocouples exist in many different types, each with its own color codes for the dissimilar-metal wires.

Types S and B use platinum or platinum-rhodium alloy wire, with different alloying distinguishing the positive from the negative wires. Sometimes type B is colored green and red rather than grey and red.
Note how the negative (−) wire of every thermocouple type is color-coded red. While this may seem backward to those familiar with modern electronics (where red and black usually represent the positive and negative poles of a DC power supply, respectively), thermocouple color codes actually pre-date electronic power supply wire coloring!
Aside from having different usable temperature ranges, these thermocouple types also differ in terms of the atmospheres they may withstand at elevated temperatures. Type J thermocouples, for instance, by one of the wire types are iron, will rapidly corrode in an oxidizing atmosphere. Type K thermocouples are attacked by reducing atmospheres as well as sulfur and cyanide. Type T thermocouples are limited in upper temperature by the oxidation of copper (a very reactive metal when hot) but stand up to both oxidizing and reducing atmospheres quite well at lower temperatures, even when wet.
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