In cryptography, a one-way compression function is a function that transforms two fixed-length inputs into a fixed-length output. The transformation is "one-way", meaning that it is difficult given a particular output to compute inputs which compress to that output. One-way compression functions are not related to conventional data compression algorithms, which instead can be inverted exactly (lossless compression) or approximately (lossy compression) to the original data.
One-way compression functions are for instance used in the Merkle–Damgård construction inside cryptographic hash functions.
One-way compression functions are often built from block ciphers.
Some methods to turn any normal block cipher into a one-way compression function are Davies–Meyer, Matyas–Meyer–Oseas, Miyaguchi–Preneel (single-block-length compression functions) and MDC-2/Meyer–Schilling, MDC-4, Hirose (double-block-length compression functions). These methods are described in detail further down. (MDC-2 is also the name of a hash function patented by IBM.)
Another method is 2BOW (or NBOW in general), which is a "high-rate multi-block-length hash function based on block ciphers" and typically achieves (asymptotic) rates between 1 and 2 independent of the hash size (only with small constant overhead). This method has not yet seen any serious security analysis, so should be handled with care.
A compression function mixes two fixed length inputs and produces a single fixed length output of the same size as one of the inputs. This can also be seen as that the compression function transforms one large fixed-length input into a shorter, fixed-length output.
For instance, input A might be 128 bits, input B 128 bits and they are compressed together to a single output of 128 bits. This is equivalent to having a single 256-bit input compressed to a single output of 128 bits.
Some compression functions do not compress by half, but instead by some other factor. For example, input A might be 256 bits, and input B 128 bits, which are compressed to a single output of 128 bits.
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