This type of compression works by reducing how much waste space is in a piece of data. For example, if you receive a data package which contains "AAAAABBBB", you could compress that into "5A4B", which has the same meaning but takes up less space. This type of compression is called "run-length encoding", because you define how long the "run" of a character is. In the above example, there are two runs: a run of 5 A's, and another of 4 B's.