Erasure correction is a very useful trick for data-engineers. I don't think this is a microcontroller trick, as much as a data-resliliency trick.
The XOR-trick is how you implement RAID5 most efficiently. A proper discussion / interview would probably describe the XOR trick, and then see if the engineer is smart enough to understand the difference between erasure and errors.
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With a blog post describing the XOR trick ahead of us: now I ask you (the audience): what is the difference between an erasure and an error? Why can this XOR-trick protect against an erasure, but NOT an error? And how does this relate to RAID5's known failure cases?
But at that point, I'm interviewing for someone who has passed a data communications class.