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In communications, a code is a rule for converting a piece of information (for example, a letter, word, or phrase) into another form or representation, not necessarily of the same type. In communications and information processing, encoding is the process by which a source (object) performs this conversion of information into data, which is then sent to a receiver (observer), such as a data processing system. Decoding is the reverse process of converting data, which has been sent by a source, into information understandable by a receiver. (see Decoding methods) A codec is an implementation of that rule (or algorithm) for coding and decoding, for example MP3, which may be a hardware implementation or a software implementation, and which may include compression.

One reason for coding is to enable communication in places where ordinary spoken or written language is difficult or impossible. For example, a cable code replaces words (e.g., ship or invoice) into shorter words, allowing the same information to be sent with fewer characters, more quickly, and most important, less expensively. Another example is the use of semaphore flags, where the configuration of flags held by a signaller or the arms of a semaphore tower encodes parts of the message, typically individual letters and numbers. Another person standing a great distance away can interpret the flags and reproduce the words sent.

In the history of cryptography, codes were once common for ensuring the confidentiality of communications, although ciphers are now used instead. See code (cryptography).

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