Being　one　of　the　most　important　breakthroughs　in　communication　fields,　network　coding　(NC)　allows　the　nodes　in　the　network　to　code　the　incoming　data　as　well　as　transmitting,　which　enhances　the　efficiency　of　network　greatly.　Especially,　for　data　based　wireless　sensor　networks　(WSN)　with　huge　information　exchange　operations,　NC　can　improve　the　broadcast　efficiency　by　combining　different　incoming　data　together　using　appropriate　coding　methods.　In　this　paper,　we　first　give　a　survey　of　NC　and　its　benefits　applied　in　WSN.　Then,　by　comparing　both　the　analysis　results　and　the　simulation　results　of　different　information　exchange　methods　in　a　cluster　structure　WSN,　it　is　proved　that　NC　based　information　exchange　method　can　significantly　reduce　the　time　of　information　exchange,　so　as　to　save　the　energy　consumption　of　each　node　greatly.　©2009　IEEE.