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JPEG and MPEG both perform 2-dimensional transforms. ZPEG works by performing a 3-dimensional (width, height, and time) Fourier transform, which is a lot more efficient because an entire extra dimension is being compressed. So instead of each frame containing its own grid of macroblocks, each macroblock spans several frames. Also does away with MPEG macroblock search algorithm, resulting in a massive speedup.

What do you guys think? Are you interested? Subjectively perfect video at 1Mb/s that you can encode in at least realtime on your iPhone? I'm very excited.

This is totally legit, by the way. The guy who gave the presentation, Raymond Westwater, is a PhD and the company that owns ZPEG, Futureware, is the same one that made the AVI specification.

[Tell me if this isn't the right forum to talk about this.]