A system and methods for data compression with encryption using asymmetric codebooks, that utilizes machine learning to generate asymmetric encoder and decoder codebooks for data encoding and compression. The use of asymmetric codebooks enables a variety of data obfuscation techniques such that output data remains useful to the decoder and any downstream entity, while concealing the original sourceblock data. The asymmetric codebooks may be utilized in reverse order to restore the original data as needed, facilitating a two-way reversible operation.