One technique is to use a semiconductor temperature sensor to measure the temperature at the cold junction and use that data to reference a look-up table or as an input into a temperature compensation equation.
Okay, I've never had any real reason to learn the specific technique used by a temperature controller or transmitter. All I needed to know was that the unit had it. Unless you're actually building the things, there should be no reason, except for self-satisfaction, for you to know how it's done.
If you really want to learn, as Electroman advises, search the 'net or find a good instrumentation handbook.
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That technique is only applicable for explaining the concept of Cold Junctions. It is not a practical method for general use. I certainly would not buy a controller or indicator that needs an ice bath for it to function properly.
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Miscommunication: when what people heard you say differs from what you said. Make yourself understood.