The invention presents new methods of compression, transmission, and decompression of video signals providing increased speed and image quality and for protecting against camcorder piracy. Methods based on selecting an anchor frame, wavelet transformation with decimation and time stamping can provide one-pass encoding of signals in which the amount of bits of information needed to be transmitted can be substantially reduced, thereby increasing the speed of transmission of digital signals over networks. Decompressing signals, along with interpolation methods to re-create portions of images of lesser importance in visual perception, can provide coordinated video and audio presentations of high quality in real-time over all kinds of networks and frame interpolation resulting in a displayed frame rate significantly higher than 30 fps. The use of randomly selected anchor frames can render reconstructed transmitted images of poor quality for pirates who do not have access to identities of anchor frames.