This document describes a new method for compressing digital images using fractals. The key points are:
1) Traditional image compression methods can achieve ratios of 2-10x but a new method using fractals has achieved ratios over 10,000x.
2) The method works by breaking an image into segments that are then matched to fractal patterns in a library. Only the codes for the fractal patterns need to be stored, not the full image data.
3) An iterated function system (IFS) uses affine transformations to relate parts of an image. The IFS codes in the library can be used to reconstruct the original image segments. This achieves very high compression ratios.