diff --git a/.gitignore b/.gitignore
index 65225d8..496ee2c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,5 +1 @@
-.DS_Store
-.vscode
-build
-sdkconfig
-sdkconfig.old
\ No newline at end of file
+.DS_Store
\ No newline at end of file
diff --git a/CMakeLists.txt b/CMakeLists.txt
index 9ab5c51..55597ed 100644
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -1 +1,6 @@
-idf_component_register(SRCS "main.c" INCLUDE_DIRS "include")
\ No newline at end of file
+if(${IDF_TARGET} STREQUAL esp8266)
+    set(requires driver)
+else()
+    set(requires driver esp_event)
+endif()
+idf_component_register(SRCS "zh_encoder.c" INCLUDE_DIRS "include" REQUIRES ${requires})
\ No newline at end of file
diff --git a/README.md b/README.md
index 3df3e4d..f7b54c3 100644
--- a/README.md
+++ b/README.md
@@ -1,3 +1,71 @@
-# esp_component_template
+# ESP32 ESP-IDF and ESP8266 RTOS SDK component for rotary encoder
 
-esp_component_template
\ No newline at end of file
+## Tested on
+
+1. [ESP8266 RTOS_SDK v3.4](https://docs.espressif.com/projects/esp8266-rtos-sdk/en/latest/index.html#)
+2. [ESP32 ESP-IDF v5.4](https://docs.espressif.com/projects/esp-idf/en/release-v5.4/esp32/index.html)
+
+## Features
+
+1. Support some encoders on one device.
+
+## Note
+
+1. Encoder pins must be pull up to the VCC via 0.1 µf capacitors.
+
+## Using
+
+In an existing project, run the following command to install the components:
+
+```text
+cd ../your_project/components
+git clone http://git.zh.com.ru/alexey.zholtikov/zh_encoder
+```
+
+In the application, add the component:
+
+```c
+#include "zh_encoder.h"
+```
+
+## Examples
+
+One encoder on device:
+
+```c
+#include "zh_encoder.h"
+
+zh_encoder_handle_t encoder_handle = {0};
+
+void zh_encoder_event_handler(void *arg, esp_event_base_t event_base, int32_t event_id, void *event_data);
+
+void app_main(void)
+{
+    esp_log_level_set("zh_encoder", ESP_LOG_NONE); // For ESP8266 first enable "Component config -> Log output -> Enable log set level" via menuconfig.
+    esp_event_loop_create_default();
+#ifdef CONFIG_IDF_TARGET_ESP8266
+    esp_event_handler_register(ZH_ENCODER, ESP_EVENT_ANY_ID, &zh_encoder_event_handler, NULL);
+#else
+    esp_event_handler_instance_register(ZH_ENCODER, ESP_EVENT_ANY_ID, &zh_encoder_event_handler, NULL, NULL);
+#endif
+    zh_encoder_init_config_t encoder_init_config = ZH_ENCODER_INIT_CONFIG_DEFAULT();
+    encoder_init_config.a_gpio_number = GPIO_NUM_27;
+    encoder_init_config.b_gpio_number = GPIO_NUM_26;
+    // encoder_init_config.encoder_min_value = -10; // Just for example.
+    // encoder_init_config.encoder_max_value = 20;  // Just for example.
+    // encoder_init_config.encoder_step = 0.1;      // Just for example.
+    encoder_init_config.encoder_number = 1;
+    zh_encoder_init(&encoder_init_config, &encoder_handle);
+    double position = 0;
+    zh_encoder_get(&encoder_handle, &position);
+    printf("Encoder position %0.2f.\n", position); // For ESP8266 first disable "Component config -> Newlib -> Enable ‘nano’ formatting options for printf/scanf family" via menuconfig.
+    // zh_encoder_set(&encoder_handle, 5); // Just for example.
+    // zh_encoder_reset(&encoder_handle);  // Just for example.
+}
+
+void zh_encoder_event_handler(void *arg, esp_event_base_t event_base, int32_t event_id, void *event_data)
+{
+    zh_encoder_event_on_isr_t *event = event_data;
+    printf("Encoder number %d position %.2f.\n", event->encoder_number, event->encoder_position); // For ESP8266 first disable "Component config -> Newlib -> Enable ‘nano’ formatting options for printf/scanf family" via menuconfig.
+}
+```
diff --git a/include/main.h b/include/main.h
deleted file mode 100644
index e69de29..0000000
diff --git a/include/zh_encoder.h b/include/zh_encoder.h
new file mode 100644
index 0000000..75a416d
--- /dev/null
+++ b/include/zh_encoder.h
@@ -0,0 +1,109 @@
+#pragma once
+
+#include "esp_log.h"
+#include "driver/gpio.h"
+#include "freertos/FreeRTOS.h"
+#include "freertos/task.h"
+#include "esp_event.h"
+
+#define ZH_ENCODER_INIT_CONFIG_DEFAULT() \
+    {                                    \
+        .task_priority = 10,             \
+        .stack_size = 3072,              \
+        .queue_size = 10,                \
+        .a_gpio_number = 0,              \
+        .b_gpio_number = 0,              \
+        .encoder_min_value = -100,       \
+        .encoder_max_value = 100,        \
+        .encoder_step = 1,               \
+        .encoder_number = 0}
+
+#ifdef __cplusplus
+extern "C"
+{
+#endif
+
+    typedef struct // Structure for initial initialization of encoder.
+    {
+        uint8_t task_priority;     // Task priority for the encoder isr processing. @note It is not recommended to set a value less than 10.
+        uint16_t stack_size;       // Stack size for task for the encoder isr processing processing. @note The minimum size is 3072 bytes.
+        uint8_t queue_size;        // Queue size for task for the encoder processing. @note It is not recommended to set a value less than 10.
+        uint8_t a_gpio_number;     // Encoder A GPIO number.
+        uint8_t b_gpio_number;     // Encoder B GPIO number.
+        int32_t encoder_min_value; // Encoder min value. @note Must be less than encoder_max_value.
+        int32_t encoder_max_value; // Encoder max value. @note Must be greater than encoder_min_value.
+        double encoder_step;       // Encoder step. @note Must be greater than 0.
+        uint8_t encoder_number;    // Unique encoder number.
+    } zh_encoder_init_config_t;
+
+    typedef struct // Encoder handle.
+    {
+        uint8_t a_gpio_number;     // Encoder A GPIO number.
+        uint8_t b_gpio_number;     // Encoder B GPIO number.
+        int32_t encoder_min_value; // Encoder min value.
+        int32_t encoder_max_value; // Encoder max value.
+        double encoder_step;       // Encoder step.
+        double encoder_position;   // Encoder position.
+        uint8_t encoder_number;    // Encoder unique number.
+        uint8_t encoder_state;     // Encoder internal state.
+        bool is_initialized;       // Encoder initialization flag.
+    } zh_encoder_handle_t;
+
+    ESP_EVENT_DECLARE_BASE(ZH_ENCODER);
+
+    typedef struct // Structure for sending data to the event handler when cause an interrupt. @note Should be used with ZH_ENCODER event base.
+    {
+        uint8_t encoder_number;  // Encoder unique number.
+        double encoder_position; // Encoder current position.
+    } zh_encoder_event_on_isr_t;
+
+    /**
+     * @brief Initialize encoder.
+     *
+     * @note The encoder will be set to the position (encoder_min_value + encoder_max_value)/2.
+     *
+     * @param[in] config Pointer to encoder initialized configuration structure. Can point to a temporary variable.
+     * @param[out] handle Pointer to unique encoder handle.
+     *
+     * @note Before initialize the encoder recommend initialize zh_encoder_init_config_t structure with default values.
+     *
+     * @code zh_encoder_init_config_t config = ZH_ENCODER_INIT_CONFIG_DEFAULT() @endcode
+     *
+     * @return ESP_OK if success or an error code otherwise.
+     */
+    esp_err_t zh_encoder_init(const zh_encoder_init_config_t *config, zh_encoder_handle_t *handle);
+
+    /**
+     * @brief Set encoder position.
+     *
+     * @param[in, out] handle Pointer to unique encoder handle.
+     * @param[in] position Encoder position (must be between encoder_min_value and encoder_max_value).
+     *
+     * @return ESP_OK if success or an error code otherwise.
+     */
+    esp_err_t zh_encoder_set(zh_encoder_handle_t *handle, double position);
+
+    /**
+     * @brief Get encoder position.
+     *
+     * @param[in] handle Pointer to unique encoder handle.
+     * @param[out] position Encoder position.
+     *
+     * @return ESP_OK if success or an error code otherwise.
+     */
+    esp_err_t zh_encoder_get(const zh_encoder_handle_t *handle, double *position);
+
+    /**
+     * @brief Reset encoder position.
+     *
+     * @note The encoder will be set to the position (encoder_min_value + encoder_max_value)/2.
+     *
+     * @param[in, out] handle Pointer to unique encoder handle.
+     *
+     * @return ESP_OK if success or an error code otherwise.
+     */
+    esp_err_t zh_encoder_reset(zh_encoder_handle_t *handle);
+
+#ifdef __cplusplus
+}
+#endif
\ No newline at end of file
diff --git a/main.c b/main.c
deleted file mode 100644
index e69de29..0000000
diff --git a/version.txt b/version.txt
index e69de29..afaf360 100644
--- a/version.txt
+++ b/version.txt
@@ -0,0 +1 @@
+1.0.0
\ No newline at end of file
diff --git a/zh_encoder.c b/zh_encoder.c
new file mode 100644
index 0000000..8e3ca15
--- /dev/null
+++ b/zh_encoder.c
@@ -0,0 +1,218 @@
+#include "zh_encoder.h"
+
+#define TAG "zh_encoder"
+
+#define ZH_ENCODER_LOGI(msg, ...) ESP_LOGI(TAG, msg, ##__VA_ARGS__)
+#define ZH_ENCODER_LOGW(msg, ...) ESP_LOGW(TAG, msg, ##__VA_ARGS__)
+#define ZH_ENCODER_LOGE(msg, ...) ESP_LOGE(TAG, msg, ##__VA_ARGS__)
+#define ZH_ENCODER_LOGE_ERR(msg, err, ...) ESP_LOGE(TAG, "[%s:%d:%s] " msg, __FILE__, __LINE__, esp_err_to_name(err), ##__VA_ARGS__)
+
+#define ZH_ENCODER_CHECK(cond, err, msg, ...) \
+    if (!(cond))                              \
+    {                                         \
+        ZH_ENCODER_LOGE_ERR(msg, err);        \
+        return err;                           \
+    }
+
+#define ZH_ENCODER_DIRECTION_CW 0x10
+#define ZH_ENCODER_DIRECTION_CCW 0x20
+
+static const uint8_t _encoder_matrix[7][4] = {
+    {0x03, 0x02, 0x01, 0x00},
+    {0x23, 0x00, 0x01, 0x00},
+    {0x13, 0x02, 0x00, 0x00},
+    {0x03, 0x05, 0x04, 0x00},
+    {0x03, 0x03, 0x04, 0x00},
+    {0x03, 0x05, 0x03, 0x00},
+};
+
+static QueueHandle_t _queue_handle = NULL;
+static bool _is_initialized = false;
+
+static esp_err_t _zh_encoder_validate_config(const zh_encoder_init_config_t *config);
+static esp_err_t _zh_encoder_gpio_init(const zh_encoder_init_config_t *config);
+static esp_err_t _zh_encoder_configure_interrupts(const zh_encoder_init_config_t *config, zh_encoder_handle_t *handle);
+static esp_err_t _zh_encoder_init_resources(const zh_encoder_init_config_t *config);
+static esp_err_t _zh_encoder_create_task(const zh_encoder_init_config_t *config);
+static void _zh_encoder_isr_handler(void *arg);
+static void _zh_encoder_isr_processing_task(void *pvParameter);
+
+ESP_EVENT_DEFINE_BASE(ZH_ENCODER);
+
+esp_err_t zh_encoder_init(const zh_encoder_init_config_t *config, zh_encoder_handle_t *handle)
+{
+    ZH_ENCODER_LOGI("Encoder initialization started.");
+    esp_err_t err = _zh_encoder_validate_config(config);
+    ZH_ENCODER_CHECK(err == ESP_OK, err, "Encoder initialization failed. Initial configuration check failed.");
+    ZH_ENCODER_LOGI("Encoder initial configuration check completed successfully.");
+    handle->encoder_number = config->encoder_number;
+    handle->encoder_min_value = config->encoder_min_value;
+    handle->encoder_max_value = config->encoder_max_value;
+    handle->encoder_step = config->encoder_step;
+    handle->encoder_position = (handle->encoder_min_value + handle->encoder_max_value) / 2;
+    err = _zh_encoder_gpio_init(config);
+    ZH_ENCODER_CHECK(err == ESP_OK, err, "Encoder initialization failed. GPIO initialization failed.");
+    ZH_ENCODER_LOGI("Encoder GPIO initialization completed successfully.");
+    handle->a_gpio_number = config->a_gpio_number;
+    handle->b_gpio_number = config->b_gpio_number;
+    err = _zh_encoder_configure_interrupts(config, handle);
+    ZH_ENCODER_CHECK(err == ESP_OK, err, "Encoder initialization failed. Interrupt initialization failed.");
+    ZH_ENCODER_LOGI("Encoder interrupt initialization completed successfully.");
+    err = _zh_encoder_init_resources(config);
+    ZH_ENCODER_CHECK(err == ESP_OK, err, "Encoder initialization failed. Resources initialization failed.");
+    ZH_ENCODER_LOGI("Encoder resources initialization completed successfully.");
+    err = _zh_encoder_create_task(config);
+    ZH_ENCODER_CHECK(err == ESP_OK, err, "Encoder initialization failed. Processing task initialization failed.");
+    ZH_ENCODER_LOGI("Encoder processing task initialization completed successfully.");
+    handle->is_initialized = true;
+    _is_initialized = true;
+    ZH_ENCODER_LOGI("Encoder initialization completed successfully.");
+    return ESP_OK;
+}
+
+esp_err_t zh_encoder_set(zh_encoder_handle_t *handle, double position)
+{
+    ZH_ENCODER_LOGI("Encoder set position started.");
+    ZH_ENCODER_CHECK(handle->is_initialized == true, ESP_FAIL, "Encoder set position failed. Encoder not initialized.");
+    ZH_ENCODER_CHECK(position <= handle->encoder_max_value && position >= handle->encoder_min_value, ESP_ERR_INVALID_ARG, "Encoder set position failed. Invalid argument.");
+    handle->encoder_position = position;
+    ZH_ENCODER_LOGI("Encoder set position completed successfully.");
+    return ESP_OK;
+}
+
+esp_err_t zh_encoder_get(const zh_encoder_handle_t *handle, double *position)
+{
+    ZH_ENCODER_LOGI("Encoder get position started.");
+    ZH_ENCODER_CHECK(handle->is_initialized == true, ESP_FAIL, "Encoder get position failed. Encoder not initialized.");
+    *position = handle->encoder_position;
+    ZH_ENCODER_LOGI("Encoder get position completed successfully.");
+    return ESP_OK;
+}
+
+esp_err_t zh_encoder_reset(zh_encoder_handle_t *handle)
+{
+    ZH_ENCODER_LOGI("Encoder reset started.");
+    ZH_ENCODER_CHECK(handle->is_initialized == true, ESP_FAIL, "Encoder reset failed. Encoder not initialized.");
+    handle->encoder_position = (handle->encoder_min_value + handle->encoder_max_value) / 2;
+    ZH_ENCODER_LOGI("Encoder reset completed successfully.");
+    return ESP_OK;
+}
+
+static esp_err_t _zh_encoder_validate_config(const zh_encoder_init_config_t *config)
+{
+    ZH_ENCODER_CHECK(config != NULL, ESP_ERR_INVALID_ARG, "Invalid configuration.");
+    ZH_ENCODER_CHECK(config->task_priority >= 10 && config->stack_size >= 3072, ESP_ERR_INVALID_ARG, "Invalid task settings.");
+    ZH_ENCODER_CHECK(config->queue_size >= 10, ESP_ERR_INVALID_ARG, "Invalid queue size.");
+    ZH_ENCODER_CHECK(config->encoder_max_value > config->encoder_min_value, ESP_ERR_INVALID_ARG, "Invalid encoder min/max value.");
+    ZH_ENCODER_CHECK(config->encoder_step > 0, ESP_ERR_INVALID_ARG, "Invalid encoder step.");
+    return ESP_OK;
+}
+
+static esp_err_t _zh_encoder_gpio_init(const zh_encoder_init_config_t *config)
+{
+    ZH_ENCODER_CHECK(config->a_gpio_number < GPIO_NUM_MAX || config->b_gpio_number < GPIO_NUM_MAX, ESP_ERR_INVALID_ARG, "Invalid GPIO number.")
+    ZH_ENCODER_CHECK(config->a_gpio_number != config->b_gpio_number, ESP_ERR_INVALID_ARG, "Invalid GPIO number.")
+    gpio_config_t pin_config = {
+        .mode = GPIO_MODE_INPUT,
+        .pin_bit_mask = (1ULL << config->a_gpio_number) | (1ULL << config->b_gpio_number),
+        .pull_up_en = GPIO_PULLUP_ENABLE,
+        .intr_type = GPIO_INTR_ANYEDGE};
+    esp_err_t err = gpio_config(&pin_config);
+    ZH_ENCODER_CHECK(err == ESP_OK, err, "GPIO initialization failed.");
+    return ESP_OK;
+}
+
+static esp_err_t _zh_encoder_configure_interrupts(const zh_encoder_init_config_t *config, zh_encoder_handle_t *handle)
+{
+    gpio_install_isr_service(0);
+    esp_err_t err = gpio_isr_handler_add(config->a_gpio_number, _zh_encoder_isr_handler, handle);
+    ZH_ENCODER_CHECK(err == ESP_OK, err, "Interrupt initialization failed.");
+    err = gpio_isr_handler_add(config->b_gpio_number, _zh_encoder_isr_handler, handle);
+    ZH_ENCODER_CHECK(err == ESP_OK, err, "Interrupt initialization failed.");
+    return ESP_OK;
+}
+
+static esp_err_t _zh_encoder_init_resources(const zh_encoder_init_config_t *config)
+{
+    if (_is_initialized == false)
+    {
+        _queue_handle = xQueueCreate(config->queue_size, sizeof(zh_encoder_handle_t));
+        ZH_ENCODER_CHECK(_queue_handle != NULL, ESP_FAIL, "Queue creation failed.");
+    }
+    return ESP_OK;
+}
+
+static esp_err_t _zh_encoder_create_task(const zh_encoder_init_config_t *config)
+{
+    if (_is_initialized == false)
+    {
+        BaseType_t err = xTaskCreatePinnedToCore(
+            &_zh_encoder_isr_processing_task,
+            "zh_encoder_isr_processing",
+            config->stack_size,
+            NULL,
+            config->task_priority,
+            NULL,
+            tskNO_AFFINITY);
+        ZH_ENCODER_CHECK(err == pdPASS, ESP_FAIL, "Task creation failed.");
+    }
+    return ESP_OK;
+}
+
+static void IRAM_ATTR _zh_encoder_isr_handler(void *arg)
+{
+    zh_encoder_handle_t *encoder_handle = (zh_encoder_handle_t *)arg;
+    BaseType_t xHigherPriorityTaskWoken = pdFALSE;
+    encoder_handle->encoder_state = _encoder_matrix[encoder_handle->encoder_state & 0x0F]
+                                                   [(gpio_get_level(encoder_handle->b_gpio_number) << 1) | gpio_get_level(encoder_handle->a_gpio_number)];
+    switch (encoder_handle->encoder_state & 0x30)
+    {
+    case ZH_ENCODER_DIRECTION_CW:
+        if (encoder_handle->encoder_position < encoder_handle->encoder_max_value)
+        {
+            encoder_handle->encoder_position = encoder_handle->encoder_position + encoder_handle->encoder_step;
+            if (encoder_handle->encoder_position > encoder_handle->encoder_max_value)
+            {
+                encoder_handle->encoder_position = encoder_handle->encoder_max_value;
+            }
+            xQueueSendFromISR(_queue_handle, encoder_handle, &xHigherPriorityTaskWoken);
+        }
+        break;
+    case ZH_ENCODER_DIRECTION_CCW:
+        if (encoder_handle->encoder_position > encoder_handle->encoder_min_value)
+        {
+            encoder_handle->encoder_position = encoder_handle->encoder_position - encoder_handle->encoder_step;
+            if (encoder_handle->encoder_position < encoder_handle->encoder_min_value)
+            {
+                encoder_handle->encoder_position = encoder_handle->encoder_min_value;
+            }
+            xQueueSendFromISR(_queue_handle, encoder_handle, &xHigherPriorityTaskWoken);
+        }
+        break;
+    default:
+        break;
+    }
+    if (xHigherPriorityTaskWoken == pdTRUE)
+    {
+        portYIELD_FROM_ISR();
+    };
+}
+
+static void IRAM_ATTR _zh_encoder_isr_processing_task(void *pvParameter)
+{
+    zh_encoder_handle_t queue = {0};
+    zh_encoder_event_on_isr_t encoder_data = {0};
+    while (xQueueReceive(_queue_handle, &queue, portMAX_DELAY) == pdTRUE)
+    {
+        ZH_ENCODER_LOGI("Encoder isr processing begin.");
+        encoder_data.encoder_number = queue.encoder_number;
+        encoder_data.encoder_position = queue.encoder_position;
+        esp_err_t err = esp_event_post(ZH_ENCODER, 0, &encoder_data, sizeof(zh_encoder_event_on_isr_t), portTICK_PERIOD_MS);
+        if (err != ESP_OK)
+        {
+            ZH_ENCODER_LOGE_ERR("Encoder isr processing failed. Failed to post interrupt event.", err);
+        }
+        ZH_ENCODER_LOGI("Encoder isr processing completed successfully.");
+    }
+    vTaskDelete(NULL);
+}
\ No newline at end of file