Magnetic encoding is a method used to store data on magnetic media, such as magnetic tapes or credit cards. It involves altering the magnetic properties of the material to represent information in a binary format, where different magnetic orientations correspond to binary digits (0s and 1s). This technique is commonly used in various applications, including data storage and banking systems. The encoded data can be read by devices like magnetic stripe readers or tape drives, which detect the magnetic patterns and convert them back into usable information.