Abstraction
In Java, abstraction means hiding the information to the real world. It establishes the contract between the party to tell about “what should we do to make use of the service”.
Example, In API development, only abstracted information of the service has been revealed to the world rather the actual implementation. Interface in java can help achieve this concept very well.
Interface provides contract between the parties, example, producer and consumer. Producer produces the goods without letting know the consumer how the product is being made. But, through interface, Producer let all consumer know what product can buy. With the help of abstraction, producer can markets the product to their consumers.
Encapsulation:
Encapsulation is one level down of abstraction. Same product company try shielding information from each other production group. Example, if a company produce wine and chocolate, encapsulation helps shielding information how each product Is being made from each other.