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The algorithm employs a technique which unlike other is independent of repetition. It is based on the replacement of characters through generated code. The total characters used in a file can be arranged in the different dimension of a matrix. Each cell of the matrix will contain a unique code, which will be replaced for respective combination of characters. Further, the codes can be reduced to the binary system to get the final compressed file. It is a simple compression and decompression process which is free from huge dictionary and time complexity and moreover the codes are generated for each combination, hence independent of repetition.