The present invention provides an optical system for decoding, switching, demultiplexing, and routing of optical encoded data signals, including: at least first and second layers, each layer including at least one demultiplexing system having an input and a plurality of outputs, each of the outputs including a decoding device, wherein each of the demultiplexing systems is capable of performing a function selected from a group of functions including decoding, switching, demultiplexing, and routing for producing decoded signals at the outputs in response to the encoded data symbols received at the input; and a coupling mechanism for optically coupling one or more demultiplexing systems of the first layer with one or more demultiplexing systems of the second layer, by respectively coupling one of the plurality of outputs of the demultiplexing system of the first layer with the input of the demultiplexing system of the second layer.