Abstract. A new method of error-correcting coding is proposed. It is based on information processing by finite automata and use of two-base numeral system. The two-level structure of the encoder provides powerful error-correcting capabilities. On the first, internal level, the input message is considered as a binary number represented as a low (2,3)-code that has some redundancy and error-correcting properties. The noise-resistant properties are strengthened on the external level where code is processed by special finite automaton. The code has variable length, i.e., codeword length depends not only on the length of input message but on the message content too. However, the average code rate is 1/2.

Keywords: finite-state automaton, error-correcting code, (2,3) code, convolutional code.