1. A digital signal encoding method for image compression followed by at least one of storage and transmission thereof, comprising the step of: defining relatively high frequency and relatively low frequency components of an original digital signal representing an image comprised of segments on each of two scales, said components being defined for each segment; fractal-processing the two relatively high frequency components by conducting a comparison therebetween; generating an encoded digital signal comprising a representation of at least one of the relatively low frequency components and a representation of a result of the fractal-processing step for each segment; utilizing said encoded digital signal to provide at least one of storage and transmission of a compressed image.