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What is Gray Codes?

The use of binary counting sequences is common in digital applications. For example, an n-bit binary value can be used to identify the position of a rotating shaft as being within one of 2n different arcs.
As the shaft turns, a sensor can detect which of the shaft’s arcs it is aligned with by reading a digital value and associating it with a specific arc. By remembering the previous position and timing the changes between positions, a processor can also compute speed and direction.
Image below shows how a shaft’s position might be divided into eight arcs using three bits. This would allow a processor to determine the shaft’s position to within 360o/8 = 45o.
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