What is a Codec?

There is a lot of confusion about the concept of codecs. A codec is a device or program that compresses data to enable faster transmissions and decompresses received data. The word codec actually stands for compressor decompressor. Many people may get codecs confused with containers, but they are much different. Codecs can be placed in containers, but a container is basically a big storage place..hence the name container. Types of containers include capture codecs, which comes from what the camera is recording, and edit codecs.