It does not encode the source code, it does obfuscate it. That means your code is still valid PHP code, not an encoded string, but is scrambled so much that a human cannot really understand it, but ordinary PHP engine can execute it. There are random algorithms built in Best PHP Obfuscator's obfuscation logic, that changes the pattern of obfuscation 'on the fly', and makes it completely obscured for every one who dare to try to understand or de-obfuscate it.
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