1. A non-transitory computer-readable medium comprising computer-readable instructions for wavelet- and channel-based video encoding, wherein execution of said computer-readable instructions by one or more processors causes said one or more processors to carry out steps comprising: obtaining a digital video data stream comprising a plurality of video frames comprising at least one channel represented as a numerical array; selecting a wavelet transform to apply to at least one selected video frame selected from said plurality of video frames; applying said wavelet transform n times to said at least one channel of said at least one selected video frame to generate wavelet space data comprising level k preview data and level k support space data for each of said at least one selected video frame, wherein said wavelet transform is applied, recursively if n>1, to said preview data, wherein n is an integer greater than zero and wherein k=1, 2,. .. , n; performing at least one conditional data substitution operation on at least one channel of said support space data in at least one level k wavelet space, k greater than zero, to generate modified support space data for the purpose of increasing video compression, wherein said conditional substitution comprises: selecting a threshold value and a support space channel from said support space data; comparing datum value in a position in a data array of said support space channel to said threshold value; and replacing said datum value with zero value when said datum value is less than said threshold value; and generating compressed output data comprising level n preview data and said modified support space data; wherein said computer-readable instructions further comprise the use of a filter for edge data preservation; wherein said use of said filter for edge data preservation comprises: iteratively applying at least one inverse wavelet transform k times, 0≦k≦n, to said level n preview data and said modified support space data to obtain at least one modified level (n−k) image; generating at least one pixel-by-pixel difference frame between said at least one selected original level (n−k) image and said at least one modified level (n−k) image; and applying at least one edge preserving filter to said at least one pixel-by-pixel difference image that replaces the values of non-boundary points in said difference frame to generate an edge data array; wherein a modified level (n−k) image with improved edges is recovered by decoding said compressed output data and performing pixel-by-pixel summation of said level (n−k) image said edge array.