The present disclosure is directed to a method and system for compressing data. In accordance with a particular embodiment of the present disclosure, at least one data string is received. The at least one data string includes characters. A token string corresponding to the at least one data string is generated. At least one repeated substring in the at least one data string is identified. A refer-back token associated with the at least one repeated substring is generated. The refer-back token indicates a position of the at least one repeated substring and a length of the at least one repeated substring.