One hot encoding is the binary sparse vector representation of text. In this encoding, the resulting binary vector is all zero-value except at the position or index of the token where it is one. Let's look at it with an example. Suppose there are two sentences: This is Big Data AI Book. This is book explains AI algorithms on Big Data.
Unique tokens (nouns) for earlier sentences would be {data,AI,book,algorithms}.
The one hot encoding representation for these tokens would be like the following:
The Encoded Sparse Vector Representation would look like the following: