A codec is a device or computer program capable of encoding or decoding a digital data stream or signal.Codec is a portmanteau of coder-decoder or, less commonly, compressor-decompressor.
A codec encodes a data stream or signal for transmission, storage or encryption, or decodes it for playback or editing. Codecs are used in videoconferencing, streaming media and video editing applications. A video camera's analog-to-digital converter (ADC) converts its analog signals into digital signals, which are then passed through a video compressor for digital transmission or storage. A receiving device then runs the signal through a video decompressor, then a digital-to-analog converter (DAC) for analog display.