How does Terminal read from stdout and draw the text on-screen?

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http://stackoverflow.com – I have a general question about how the terminal and processes work. From any process, if I write to stdout (i.e. file descriptor 2), it gets drawn on the terminal window. My question is, how is this actually implemented? Is stdout an actual 'dummy' file somewhere that the terminal keeps on reading from and drawing the content on screen? Or is there some kind of IPC between the process/stdout stream and the Terminal? Note that when I say terminal, I mean some general GUI terminal/console, such as Terminal on the Mac. P.S. If this question is unclear, let me know and I will happily try to ex (HowTos)