There is provided a computer implemented method of compressing a baseline dataset comprising a sequence of a plurality of instances of a plurality of unique data elements, the method comprising: providing a weight function that calculates an increasing value for a weight for each one of the plurality of instances of each one of the plurality of unique data elements in the baseline dataset, as a function of increasing number of previously processed sequential locations of each of the plurality of instances of each respective unique data element within the baseline dataset relative to a current sequential location of the baseline dataset, computing an encoding for the baseline dataset according to a distribution of the weight function computed for the plurality of unique data elements in the baseline dataset, and creating a compressed dataset according to the encoding.