OK, turns out my compression algorithm is basically known, it's called Re-Pair. 
Ah well. I'm not sure if a linear time implementation had been found before 
mine, see e.g. here 
<https://stackoverflow.com/questions/2093223/optimizing-byte-pair-encoding/63206691>.

However, I think I am doing new things with it, for example fast full-text 
searching. That latter part will not be open source anymore for the time being. 
I'll see how well it works, but it strikes me as a very marketable product. 
Everyone and their dog is searching in large text corpora daily.
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