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One hot encoding is encoding of a finite state machine where each state will take a separate flip flop. If u hav 8 states in Finite state machine then encoder requires 8 flip flops. Same state machine requires only three ff'f in Gray and Binary encoding. One hot encoding will increase the speed but area utilisation will be more.
Binary encoding is a binary count of the state machine number in sequence
and implement very less logic.
Binary encoding is the simplest state machine encoding and all possible states are defined and there is no possibility of a hang state.
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