Highly Secure Adaptive Arithmetic Coding Data Compression System

Physical Optics Corporation (POC) proposes to develop a novel highly Secure Adaptive Arithmetic Coding (SAAC) data compression system for theater missile defense. The proposed SAAC algorithm will for the first time combine near optimal data compressionwith high data security. The SAAC adaptive Markov model will exploit the structural redundancy in the data sequence to maximize compression, and the large number of states in the adaptive Markov model will make it extremely difficult for attackers totrace the current state of the encoder by reverse engineering. The adaptive Markov model acts as a very large key, which depends on the entire data sequence that has been encoded so far. To further enhance data security, the compressed bit stream will bemasked by another pseudo-random bit stream. POC will implement the SAAC algorithm on the company's third generation Processing and Ultra-Memory Access eight-billion-operation-per-second 2 in. x 3 in. hardware to support real-time high data ratecommunications. In Phase I, POC will demonstrate the proof-of-principle of the SAAC technology by compressing data streams resembling TMD data in relevant respects in a secure environment, and will demonstrate the feasibility of integrating the resultingmodule into an existing MDA system. Bandwidth is always a precious resource in data communication systems with more and more information to transmit, and security is critical to data networks. The proposed technology will find numerous applications incurrent and future data communication systems to enhance data security and the efficiency of bandwidth usage. The SAAC technology will be perfectly suited to e-commerce systems in which large volumes of sensitive data are transmitted. Boston ConsultingGroup (BCG) estimates that U.S. B2B e-commerce will grow from $1.2 trillion in 2000 to $4.8 trillion in transaction value by 2004.