Smart cameras are part of many automated system for detection and correction in various systems. They can be used for detecting unwanted particles inside a fuel tank or may be placed on an airplane engine to provide protection from any approaching obstacle. They can also be used to detect a finger print or other biometric identification on a document or in some video domain. These systems usually have a very sensitive fast processing nature, to stop some ongoing information or extract some information. Image compression algorithms are used for the captured images to enable fast communication between different nodes i.e. the cameras and the processing units. Nowadays these algorithms are very popular with sensor based smart camera. The challenges associated with these networks are fast communication of these images between different nodes or to a centralized system. Thus a study i s provided for an algorithm used for this purpose. In-depth study and Matlab modeling of CCITT group4 TIFF is the target of this thesis. This work provides detail study about the CCITT TIFF algorithms and provides a Matlab model for the compression algorithm for monochrome images.