In hardware, audio codec refers to a single device that encodes analog audio as digital signals and decodes digital back into analog. In other words, it contains both an analog-to-digital converter (ADC) and digital-to-analog converter (DAC) running off the same clock. This is used in sound cards that support both audio in and out, for instance.
An audio coding format (or sometimes audio compression format) is a content representation format for storage or transmission of digital audio (such as in Digital television, digital radio and in audio and video files). Examples of audio coding formats include MP3, AAC, Vorbis, FLAC, and Opus. A specific software or hardware implementation capable of audio compression and decompression to/from a specific audio coding format is called an audio codec; an example of an audio codec is LAME, which is one of several different codecs which implements encoding and decoding audio in the MP3 audio coding format in software.
Some audio coding formats are documented by a detailed technical specification document known as an audio coding specification. Some such specifications are written and approved by standardization organizations as technical standards, and are thus known as an audio coding standard. The term 'standard' is also sometimes used for de facto standards as well as formal standards.
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