Kim This research focuses on digital filtering in a Block Transform Domain (BTD). Such an approach can offer performance improvements close to the data compression ratio without significantly increasing the system cost. This is because when the number of bits used in the signal representation is reduced, the errors due to finite precision computations can be reduced through proper bit allocations within the transform coefficient representations and filtering computations and by eliminating intermediate steps such as an inverse block transform. Mathematical descriptions and properties of the BTD filters are being examined. Minimum roundoff filter design are also being investigated for state-space and lattice as well as FIR structures in the block transform domain. In order to implement the resulting nonuniform precision computations, a Block Parallel, Bit-Serial (BPBS) approach is proposed. The resulting structure is regular and permits faster computation by taking advantage of the compressed signal representation.