This document discusses fractal image compression. It begins with an overview and explanation of why fractal compression is worth exploring due to its ability to take advantage of similarities within images. During encoding, an image is divided into blocks and each block is compared to larger blocks to find the best matching transform. The transform information is stored along with locations. Decoding applies the transforms to reconstruct the image iteratively. While computationally intensive for encoding, decompression is fast. Possible improvements include ordering blocks and reducing search areas to improve encoding speed and using more advanced trees and transforms to improve quality and compression rates.