Data interchange formats are standardized ways to structure and encode data so that it can be easily shared and understood between different systems or applications. Common formats include JSON, XML, and CSV, each serving specific purposes and use cases. These formats help ensure that data remains consistent and accessible, regardless of the software or platform being used. Using data interchange formats simplifies the process of data exchange, making it easier for developers to integrate various systems. For example, JSON is often used in web applications for its lightweight structure, while XML is favored for its ability to represent complex data hierarchies.