Lossless compression method and apparatus for data storage and transmission

The present invention provides method and apparatus of a lossless data compression to reduce the amount of data to be transmitted or to be saved into a storage device. In the VLSI implementation, a data path module combined with some state machines support multiple formats of data file and to execute the function of the lossless data compression. The amount of the program data of a File System is reduced by a lossless compression method before it is saved into the storage device and to be recovered to execute the function of a File System. Before transmission, the data file compressed by the lossless compression algorithm coupled with the corresponding decompression code will be packed into a data stream and the receiving node will recover the data file by executing the decompression code.