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In 1951, David A. Huffman and his MIT information theory classmates were given the choice of a term paper or a final exam. The professor, Robert M. Fano, assigned a term paper on the problem of finding the most efficient binary code. Huffman, unable to prove any codes were the most efficient, was about to give up and start studying for the final when he hit upon the idea of using a frequency-sorted binary tree and quickly proved this method the most efficient.
In doing so, the student outdid his professor, who had worked with information theory inventor Claude Shannon to develop a similar code. Huffman avoided the major flaw of the suboptimal Shannon-Fano coding by building the tree from the bottom up instead of from the top down.