In signal processing, Data Compression involves encoding information using fewer bits than the original representation. Compression can be either lossy or lossless. Lossless compression reduces bits by identifying and eliminating statistical redundancy. No information is lost in lossless compression. Lossy compression reduces bits by removing unnecessary or less important information.

The process of reducing the size of a data file is often referred to as data compression. In the context of data transmission, it is called source coding; encoding done at the source of the data before it is stored or transmitted. Source coding should not be confused with channel coding, for error detection and correction or line coding, the means for mapping data onto a signal.

Data Compression is useful because it reduces resources required to store and transmit data. Computational resources are consumed in the compression process and, usually, in the reversal of the process (decompression). Data compression is subject to a space–time complexity trade-off. 

This Free Online Course covers the essential information that every programmer needs to know about algorithms and data structures, with emphasis on applications and scientific performance analysis. It covers  the elementary data structures, sorting, and searching algorithms and also focuses on graph- and string-processing algorithms.