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In this video, we break down the fundamentals of data encoding and decoding — why it matters, when to use it, and how different formats impact performance and compatibility. We start with the deployment plan and compatibility considerations, then explore how encoding/decoding works in real-world systems. You'll also learn the downsides of relying on default libraries and why standardized formats are essential for scalability. We compare common standardized text formats like JSON and XML, and then move into binary formats, discussing when they make more sense for performance-critical systems. By the end of this video, you'll clearly understand: When to encode data Differences between text and binary formats Trade-offs between readability and efficiency Best practices for production systems Timecodes 00:00 - Introduction 00:50 - Deployment plan 01:33 - Compatibility 02:33 - Encoding/Decoding data 03:10 - Cons of default lib 03:33 - Standardized Encoding Formats 05:00 - Binary Formats 05:30 - When do we encode data? If you're a backend developer, system designer, or preparing for system design interviews, this video will give you a solid conceptual foundation. 👍 Like, comment, and subscribe for more deep dives into backend engineering and system architecture topics.