The rotary encoder can count the quantity of output pulse in the positive and negative direction rotation. Unlike the potentiometer, the rotation counting is unlimited. With the button on the rotary encoder, it can be reset to the initial state, that starts counting from 0.
The M274 360 Degree Rotary Encoder Module Brick Sensor is a rotary input device (as in knob) that provides an indication of how much the knob has been rotated AND what direction it is rotating in. It’s a great device for stepper and servo motor control. You could also use it to control devices like digital potentiometers.
M274 360 rotary Degree encoder, is an incremental electro-mechanical device that converts the angular position or motion of a shaft or axle to digital code. The output of incremental encoders provides information about the motion of the shaft, which is typically further processed in processor/controllers into information such as speed, distance, and position.