A system for storing and transmitting data in a highly compact format comprising reference codes to data chunklets contained in a library, wherein the data are retrieved after transmission or storage by re-constructing the data from the chunklets in the library using the reference codes. One version of the system contains proprietary libraries which act as a form of data security. Another version of the system contains a standardized version of the library encoded onto the firmware of a broad range of computing devices, allowing optimized storage and transmission of data between two such devices equipped with the system.