sparse coding
Sparse coding is the brain's habit of describing each thing it senses using only a small handful of busy neurons while almost all the others stay quiet. Imagine a huge stadium crowd holding up colored cards: instead of everyone flashing their card for every event, only a few dozen people light up for any particular face, sound, or smell — and a different small group lights up for the next one. Because so few are active at once, the exact little pattern that switches on becomes a clean, distinctive 'name tag' for whatever the brain just experienced.
Why bother keeping most neurons silent? It is efficient and clear. Firing a neuron costs energy, so letting only a few spike at a time saves fuel — the brain runs on roughly the power of a dim light bulb. It also makes signals easy to tell apart: when patterns barely overlap, two similar smells or two similar faces don't get smudged together, and later cells can read out 'which few are on' with very little confusion. Researchers see this in real brains — for example, in the visual cortex and in the parts of the fly and mouse brain that sort odors — and the same idea is borrowed in machine learning, where models are nudged to explain data with as few active features as possible.
Sparse means few-active-at-once; it sits between a 'grandmother cell' (one neuron per concept) and a fully dense code (almost every neuron active for everything).