Decimal Encoding

Decimal encoding is a method of representing decimal numbers (base-10) in binary or other digital formats, often used in computing to handle financial, scientific, or precise numerical data without floating-point rounding errors. It involves encoding each decimal digit or the entire number into a fixed or variable-length binary representation, such as Binary-Coded Decimal (BCD) or decimal floating-point formats. This approach ensures accurate arithmetic operations and storage for applications requiring exact decimal precision.

Also known as: BCD, Binary-Coded Decimal, Decimal Representation, Decimal Arithmetic, Fixed-Point Decimal

Why learn Decimal Encoding?

Developers should learn decimal encoding when working on financial systems, accounting software, or any domain where monetary calculations demand exactness to avoid rounding errors inherent in binary floating-point representations. It is also crucial in scientific computing, database systems handling decimal data types, and embedded systems processing sensor data with decimal precision. Use cases include banking transactions, tax calculations, inventory management, and compliance with standards like IEEE 754-2008 for decimal arithmetic.

Learning Resources

• docs: IEEE 754 Standard for Decimal Floating-Point Arithmetic
• tutorial: Decimal Arithmetic Tutorial by IBM
• tutorial: Binary-Coded Decimal (BCD) Explained on GeeksforGeeks
• docs: Decimal Encoding in Python with Decimal Module
• docs: Decimal vs Float in Databases on PostgreSQL Documentation