- LZW is a loss less data compression algorithm accepted world wide.

- This algorithm has high throughput potential in implementation.

- The high level algorithm goes like this:

1. Assign all the strings to dictionary.

2. Identify the longest string L available in the dictionary which matches the existing input.

3. Find the dictionary index for L to get the output and remove L from the input.

4. Concatenate L by the next symbol of the input to the dictionary.

5. Repeat the process from step 2.