The easiest way to describe a 1-way system is that it functions the same as a factory remote but with much greater range. When you press a button the remote starter will execute the command and the vehicle will respond with parking light flashes. A 2-way system does the same but it also sends a signal back to the remote to notify you that the command has been executed. Notification is done by LEDs and a series of audible beeps on a 2-way LED system or by the LCD screen and audible beeps on a 2-way LCD system. 2-way systems generally have a greater range and are typically more desirable since you do not have to be within eyesight of the vehicle to know that the command has been executed.
What is the difference between a 1-Way and a 2-Way remote start system?
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