In this paper, a novel diffusion estimation algorithm is proposed by combining the adapt-then-combine (ATC) diffusion NLMS (DNLMS) and the sign operation to the error signals at all agents. Due to using the sign operation, the proposed algorithm has a robust performance against impulsive noise. A variable step size is obtained by minimizing the mean-square deviation to achieve fast convergence rate and small steady-state error. Meanwhile, the proposed algorithm has a good tracking capability when the system suddenly changes. Simulations on system identifications demonstrate that the proposed diffusion algorithm shows a good performance under an impulsive noise scenario.
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