Data encoding is the process of converting information into a format that can be transferred, stored, and represented in a particular medium by means of symbols or markers. Data encoding is an essential part of data storage and transfer from one place to another. Data encoding is the process of converting data into a different form so that it can be transmitted, stored, and read by machines. Data encoding may vary depending on your intended use. The most common forms of data encoding include binary and ASCII transmissions. What is data encoding? Data encoding is the process of communicating information through the use of code. Sometimes it’s used in coding and decoding, which means changing electronic bytes from one form to another. It can also be used in identifying a person’s personal identification number (PIN) or password.