The combinational circuits known as Encoders (or binary encoders) are employed to transform the applied input signal into a coded format at the output. The class of medium scale integrated circuits includes these digital circuits. They are essentially used to code the input data and reduce the number of data lines.
With binary Encoders, just one input line at a time is engaged out of all the input lines. Then the encoder's internal logic circuitry transforms this active signal into encoded binary representation.
Assuming that an encoder has 2n input lines, it will have n output lines. Encoded data can therefore be transferred from one end to the other using fewer data lines.
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