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The function of the bypass capacitor is to dampen the AC, or the noise. Another term used for the bypass capacitor is a filter cap. In the chart on the left, you can see the what happens to a noisy voltage when a by-pass capacitor is installed.ou can see even with the bypass, the voltage does fluctuate, even though it is to a smaller degree. The key function of the bypass capacitor is to reduce the amount of ripple in a circuit. Too much ripple is bad, and can lead to failure of the circuit.
Although capacitors operate in the same way whatever the capacitor application or use, there are several different uses for capacitors in circuits. In order to select the right kind of capacitor it is necessary to have an understanding of the particular capacitor application so that its properties can be matched to the given use to which it is to be put.