Positioning and handling systems require fast logging of position data and quick recognition of any changes which needs high resolution encoders and linear scales to feed position data to the central control through an encoder interface. Since serial digital interfaces are limited in capacity concerning highly dynamic systems and high-resolution encoders, there are classic open source encoder interfaces that operate with analog sine/cosine signals, current or voltage signals or serial or parallel interfaces for digital position data. To meet the present and future requirements for these highly dynamic systems, the appropriate interface must be selected. The following white paper describes possible solutions and alternatives to this problem.