Usage of unicode() and encode() functions in Python

Question

str is text representation in bytes, unicode is text representation in characters.

You decode text from bytes to unicode and encode a unicode into bytes with some encoding.

That is:

>>> 'abc'.decode('utf-8')  # str to unicode
u'abc'
>>> u'abc'.encode('utf-8') # unicode to str
'abc'

UPD Sep 2020: The answer was written when Python 2 was mostly used. In Python 3, str was renamed to bytes, and unicode was renamed to str.

>>> b'abc'.decode('utf-8') # bytes to str
'abc'
>>> 'abc'.encode('utf-8'). # str to bytes
b'abc'