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What Is The Difference Between Decoder And De-multiplexer?

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Oddman answered
Suppose I have the series
  HTIH TEIR SOSO NTIO AFTA ELNL

Demultiplexing is separating the letters into two streams (alternate characters in this case).
  Hitissniaten
  therootofall

Decoding is making sense of the separated streams. The first one has each group of 3 characters rotated one place.
  Hit iss nia ten  becomes  thisisaninte, which breaks apart to "this is an inte"
The second one has no scrambling. It decodes to "the root of all"

I have shown a multiplexed stream that alternated characters from two sources. Multiplexing can be much more complicated than that. For example, one source may comprise every other character, while alternate characters are from a dozen other streams multiplexed according to different rules.

Of course encoding can be done a variety of ways, ranging from none at all (as in stream 2 above) to very elaborate cryptographic codes.

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