This document summarizes a research paper that proposes a new data compression algorithm based on number theory and differential analysis. The algorithm breaks files into smaller files using differential techniques. It then represents each small file as a number in a given number system based on the number of unique characters. The numbers are converted to binary to reduce the number of bits. The algorithm aims to achieve compression through bit reduction rather than character repetition. Experimental results show the algorithm achieves constant compression and has moderate compression ratios with low time complexity. The algorithm provides good results when used to further compress files compressed by other algorithms.