Investigate "PPP Predictor Compression Protocol" as a Possible KnotStorage

[jdscriven]

This algorithm uses a 256x256 (or 512x256 or 768x256 or 1024x256) byte grid that is precomputed based on a corpus (such as english texts) to predict the next byte given the previous few bytes.

http://stackoverflow.com/a/1138856/651794
http://en.wikibooks.org/wiki/Data_Compression/Markov_models

[jdscriven]

There is theoretical max compression to 1/8 of original size, since compression is done byte-by-byte. That is, in the best case scenario, every byte will compress to a single bit. What if the next two or three bytes were predicted instead?