This document discusses arithmetic coding, an entropy encoding technique. It begins with an introduction comparing arithmetic coding to Huffman coding. The document then provides pseudocode for the basic encoding and decoding algorithms. It describes how scaling techniques like E1 and E2 scaling allow for incremental encoding and decoding as well as achieving infinite precision with finite-precision integers. The document outlines applications of arithmetic coding in areas like JBIG, H.264, and JPEG 2000.