Method for information encryption and transfer

A method for encoding and decoding information for electronic transfer through network computer systems. The invention increases the difficulty of code breaking by modifying the data stream in several different manners. First the data stream is compressed and partitioned into discreet components or segments. Then the partitioned data stream elements are each mixed in a sem-random manner to allow for transmission of the original information yet increase the difficulty of code breaking. In addition to mixing the data, an updated mixing variable is added to the information transmitted for each partition which is sent. This allows for the use of a mixing variable which is constantly evolving while transmitting and encrypting a data stream. A similar key and key variable are used for updating the encryption information that is being sent. This system also provides a method for decoding the information once it has been encoded and transmitted. One example of the present invention includes the data encoding and decoding method including a data compression system, a data mixing system, a data encryption system, a mixing variable updating signal, and an encryption key updating variable.