Abstract: A technique for processing streams of time-varying data provides first through Nth processing stages, each processing stage having a respective encoder and a respective decoder. The encoder of each processing stage receives successive values of time-varying input data and generates therefrom encoded output data. Each encoder provides its encoded output data as input to its respective decoder, which generates a prediction of a next value of the time-varying input data that the encoder will receive. Each encoded output is based upon both (1) a current input value and (2) one or more previous input values, such that encodings are based at least in part on history. Encoders are coupled output-to-input, with the input of the first encoder receiving an overall processing input. Decoders are likewise coupled output-to-input, with each decoder providing feedback to the previous decoder and the first decoder providing an overall processing output.