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The Grove Hall Sensor measures the 'hall effect', which is the production of a voltage difference across an electrical conductor, transverse to an electric current in the conductor as well as a magnetic field perpendicular to the current.
The output of the continuous-time switch hall sensor on this board switches low and turns on when a magnetic field (south polarity) perpendicular to the Hall sensor exceeds the BOP threshold (the magnetic field above which the output turns on), and it switches high and turns on when the magnetic field disappears.