Speed and power consumption of on-chip interconnect network have become important in advanced CMOS technologies. The advances in fabrication technology allow designers to implement a whole system on a single chip, but the inherent design complexity of such systems makes it hard to fully explore the technology potential. As technology varies the power dissipated by the links of a Network-on-Chip (NoC) due to noise increases the risk of errors in the communication subsystem. In this paper, the authors present a data encoding technique using gray code input aimed at reducing the errors and power dissipation by the links of an NOC. The proposed scheme uses the binary to gray conversion at the transmitter and gray to binary conversion at the receiver.