Wikipedia

Encoder

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A rotary encoder is a sensor or transducer for converting rotary motion or position to a series of electronic pulses.

An encoder is a device used to encode a signal (such as a bitstream) or data into a form that is acceptable for transmission or storage. This is usually done by means of a programmed algorithm, especially if any part is digital, while most analogue encoding is done with analog circuitry.

Example: A Single Bit 4-to-2 Line Encoder

See also

[1] - a very good overview of encoders.

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