A differential modulation scheme using space-time block codes is put forward. Compared with other schemes, our scheme has lower computational complexity and has a simpler decoder. In the case of three or four transmitter antennas, our scheme has a higher rate a higher coding gain and a lower bit error rate for a given rate. Then we made simulations for space-time block codes as well as group codes in the case of two, three, four and five transmit antennas. The simulations prove that using two transmit antennas, one receive antenna and code rate of 4 bits/s/Hz, the differential STBC method outperform the differential group codes method by 4 dB. Useing three, four and five transmit antennas, one receive antenna, and code rate of 3 bits/s/Hz are adopted, the differential STBC method outperform the differential group codes method by 5 dB, 6.5 dB and 7 dB, respectively. In other words, the differential modulation scheme based on space-time block code is better than the corresponding differential modulation
