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Source Coding : this is done to reduce the size of the information (data compression) being transmitted and conserve the available bandwidth. This process reduces redundancy.

e.g. zipping files, video coding (H.264, AVS-China, Dirac) etc.

Channel Coding : this is done to reduce errors during transmission of data along the channel from the source to the destination. This process adds to the redundancy of data.

e.g. Turbo codes, convolutional codes etc.

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