1. A method for representing a correlated set of images, comprising the steps of: applying, in an encoder, a lossy operation to each image in the correlated set to generate a coarse image, wherein the lossy operation is a coarse quantization; encoding, in the encoder, losslessly the coarse image to yield an encoded coarse image; representing, in the encoder, independently each image in the correlated set as syndrome bits; decoding, in a decoder, the encoded coarse image to obtain a decoded coarse image; determining, in the decoder, evidence from pixels in the decoded coarse image, wherein the evidence includes a pixel intensity and a probability distribution of the pixel intensity for each pixel, and wherein the evidence is determined in a pixel domain; estimating motion, in the decoder, between the decoded coarse image and previously decoded images to improve the evidence; estimating, in the decoder, a reconstructed image based on the syndrome bits and the evidence using probabilistic inference; and storing, in the decoder, the reconstructed image as a previously decoded image.