Cooperative diversity technique allows us to create a virtual antenna array, trading off costs - in power, bandwidth and complexity – for the greater benefits gained by exploiting spatial diversity in the channel. Network coding is a new transmission paradigm that takes the advantage of broadcast nature of wireless medium and proved its strength in optimizing, improving the performance and is particularly suitable when robust operation is of high importance. Our scheme provides distributed method that selects the best cooperative relay from a set of N available relays with data from the global RSSI table to achieve diversity gains to the order of number of relays in the network. Such diversity gains translate into greatly improved robustness to fading for the same transmit power, or substantially reduced transmitting power for the same level of performance. The performance of the network coded cooperative communication scheme is evaluated in terms of the probability of system outage (Ps) and total power consumption (Pt).

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