A network device capable of transmitting data includes a processor, an encoder and a port. The encoder encodes the data using a known valid dictionary while constructing a new dictionary over an epoch of data. A network device capable of receiving encoded data is also disclosed. The network device includes a processor, a port and a decoder. The decoder is operable to decode the data using a known valid dictionary, while constructing a new dictionary over the epoch of data. When a valid dictionary has been constructed, the receiving device notifies the transmitting device.