1) The document discusses wavelet transforms as a recent algorithm for image compression. Wavelet transforms can capture variations at different scales in an image, making them well-suited for reducing spatial redundancy.
2) A typical lossy image compression system uses four main components - source encoding, thresholding, quantization, and entropy encoding - to achieve compression by removing different types of redundancy in images.
3) Experimental results on the Lena test image showed that soft thresholding followed by quantization achieved higher peak signal-to-noise ratios than hard thresholding and quantization, demonstrating the effectiveness of wavelet transforms for image compression.