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This paper presents a compression algorithm for dynamic data, the size of which keeps on increasing frequently. It is an efficient data compression technique comprising of a block approach that keeps the data in compressed form as long as possible and enables the data to be appended to the already compressed text. The approach requires only a minimal decompression for supporting update of data. The algorithm reduces the unnecessary time spent in compression-decompression approaches for dynamic documents deigned till now to a minimum. Further, the text document can be modified as required without decompressing and again compressing the whole document.