ASN.1 is a way to represent data structures that is more efficient than JSON or XML for transmitting data. It uses tags to identify data types and lengths to specify the size of content. Data is encoded using rules like BER which represents tags, lengths, and content in a compact binary format to reduce overhead and bandwidth compared to textual formats. While encoding and decoding ASN.1 requires understanding its data structure definitions, it can significantly reduce the size of transmitted data.