Line coding is used in optical fiber communication to encode digital signals for transmission by arranging signal symbols in a particular pattern. It involves converting binary data into an optical signal. The goals of line coding are to transmit binary data like voice, video or financial information over long distances using optical fiber with sufficient bandwidth. There are three main types of line coding: non-return-to-zero (NRZ), return-to-zero (RZ), and phase encoding (PE). NRZ represents 1s and 0s with different voltage levels but no neutral state, while RZ includes a neutral rest state between bits. PE converts blocks of input bits into code bits with added redundancy for error detection and correction.