Serial transmission sends data one bit at a time over a single transmission line, making it simple but slow. Parallel transmission sends multiple bits simultaneously over multiple lines, making it faster but less reliable and requiring more complex hardware. Modern devices primarily use serial transmission due to its ability to achieve high speeds without issues like crosstalk that affect parallel transmission. Error detection methods like parity bits allow receivers to detect errors by checking for an expected ratio of 1s and 0s in transmitted data.