Last Updated: May 26, 2026
Practice this topic in a realistic system design interview
Data compression reduces the number of bytes needed to store or transmit data. Fewer bytes can mean lower storage cost, less network traffic, faster disk reads, better cache density, and cheaper backups.
Compression is not free. It trades CPU time for smaller data. A good design uses compression where bytes are expensive and avoids it where CPU, latency, or random access matter more.