This paper suggests a new approach for data compression during extracutaneous transmission of neural signals recorded by high-density microelectrode array in the cortex. The approach is based on exploiting the temporal and spatial characteristics of the neural recordings in order to strip the redundancy and infer the useful information early in the data stream. The proposed signal processing algorithms augment current filtering and amplification capability and may be a viable replacement to on chip spike detection and sorting currently employed to remedy the bandwidth limitations. Temporal processing is devised by exploiting the sparseness capabilities of the discrete wavelet transform, while spatial processing exploits the reduction in the number of physical channels through quasi-periodic eigendecomposition of the data covariance matrix. Our results demonstrate that substantial improvements are obtained in terms of lower transmission bandwidth, reduced latency and optimized processor utilization. We also demonstrate the improvements qualitatively in terms of superior denoising capabilities and higher fidelity of the obtained signals.
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