Byte-Pair Encoding (BPE) is a subword tokenization algorithm that iteratively merges the most frequent pair of consecutive characters or bytes in a corpus to create a vocabulary. This process starts with a base vocabulary of individual characters and repeatedly combines frequent pairs (like 't' and 'h' into 'th') into new, longer tokens. The resulting vocabulary can efficiently represent any word in the language, including rare or unseen words, by breaking them into known subword units. This makes BPE particularly effective for neural network models, especially in machine translation and modern large language models, as it provides a compact way to handle vast and morphologically rich languages without an infinitely large vocabulary.
