MCU Processing while outputting in Serial

Hello,
When outputting serial data on the RX TX pins, can The microcontroller still read inputs, my first assumption is yes, and that it sets a serial bit HIGH then runs normal processes and then comes back a short time later to set the next bit HIGH or LOW and so on. I guess I’m asking if Serial output halts the processor until the task is finished.

The context is that I am trying to read data from an encoder which can send many thousands of pulses in a very short time. At 1024 steps per revolution, the Photon/Argon can handle this task very easily, but I was wondering it would be able to see these steps while outputting serial data. The steps per revolution can go up to 65,536, but I plan to stay on the lowest setting for this application.

Thanks a lot,
Nick44

The UART is hardware driven.
The software only placed data into a buffer and the hardware takes that data out in the background via DMA or interrupt driven (in case of ParticleSoftSerial).

What is a very short time?
If you are intending to get 65536 pulses per second you are looking at 15µs per pulse which is definetly demanding even when using interrupts.

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