I have seen certain questions and bugs related to
collation. Could anyone of the visitors explain the difference in
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Encoding refers to that character set used.
Collation determines the sort order.
Excellent answers found here, at programmers.SE:
collation defines the behaviour of comparison operators: =, >, <, <=, >= …
I think following qualifies as a better definition for Encoding
Encoding is an algorithm that translates a list of numbers to binary so it can be stored on disk. For example UTF-8 would translate the number sequence 1, 2, 3, 4 like this: “00000001 00000010 00000011 00000100″.