A system includes an encoder and a decoder. The encoder selects a first matched template for un-encoded pixels of a video frame using an algorithm for measuring a similarity between image blocks of the video frame, the algorithm being based on a weighted scheme of reconstructed adjacent pixels, generates at least one residual for the un-encoded pixels of the video frame based on the matched template, and encodes residuals as compressed bits using an asymmetric discrete sine transform (ADST). The decoder decodes the compressed video bits as residuals using the ADST, selects a second matched template using an algorithm for measuring a similarity between image blocks of a video frame associated with the compressed video bits, the algorithm being based on a weighted scheme of reconstructed adjacent pixels, and generates reconstructed pixels of the video frame based on the matched template and the decoded compressed video bits.