A codec, systems, and methods for compressing video data includes selecting a current video frame of the video data, dividing the current video frame into multiple blocks, wherein each block has M×N pixels, approximating the blocks of the current frame based on motion vectors associated with corresponding blocks from the previous frame, further refining the blocks of the current frame by determining optimal motion vectors for the blocks of the current frame based on the motion vectors provided (i) by the corresponding blocks from the previous frame, (ii) by the surrounding blocks in the current frame, and (iii) from successively smaller blocks within the current frame, wherein the optimal motion vectors for the blocks of the current frame are optimized to balance distortion and rate and wherein the optimal motion vectors are represented by codewords generated from Huffman tables.