diff --git a/LICENSE b/LICENSE
new file mode 100644
--- /dev/null
+++ b/LICENSE
@@ -0,0 +1,22 @@
+Copyright (c) 2017, Nikita Volkov
+
+Permission is hereby granted, free of charge, to any person
+obtaining a copy of this software and associated documentation
+files (the "Software"), to deal in the Software without
+restriction, including without limitation the rights to use,
+copy, modify, merge, publish, distribute, sublicense, and/or sell
+copies of the Software, and to permit persons to whom the
+Software is furnished to do so, subject to the following
+conditions:
+
+The above copyright notice and this permission notice shall be
+included in all copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND,
+EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES
+OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
+NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT
+HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY,
+WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING
+FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR
+OTHER DEALINGS IN THE SOFTWARE.
diff --git a/Setup.hs b/Setup.hs
new file mode 100644
--- /dev/null
+++ b/Setup.hs
@@ -0,0 +1,2 @@
+import Distribution.Simple
+main = defaultMain
diff --git a/ascii-string.cabal b/ascii-string.cabal
new file mode 100644
--- /dev/null
+++ b/ascii-string.cabal
@@ -0,0 +1,70 @@
+name:
+  ascii-string
+version:
+  1
+synopsis:
+  Compact representation of ASCII strings
+description:
+  ASCII strings stored using just 7 bits per character.
+  Compared to ByteString, this saves you a whole byte per 8 characters.
+homepage:
+  https://github.com/metrix-ai/ascii-string 
+bug-reports:
+  https://github.com/metrix-ai/ascii-string/issues 
+author:
+  Nikita Volkov <nikita.y.volkov@mail.ru>
+maintainer:
+  Metrix.AI Ninjas <ninjas@metrix.ai>
+copyright:
+  (c) 2018, Metrix.AI
+license:
+  MIT
+license-file:
+  LICENSE
+build-type:
+  Simple
+cabal-version:
+  >=1.10
+
+library
+  hs-source-dirs:
+    library
+  default-extensions:
+    Arrows, BangPatterns, ConstraintKinds, DataKinds, DefaultSignatures, DeriveDataTypeable, DeriveFoldable, DeriveFunctor, DeriveGeneric, DeriveTraversable, EmptyDataDecls, FlexibleContexts, FlexibleInstances, FunctionalDependencies, GADTs, GeneralizedNewtypeDeriving, LambdaCase, LiberalTypeSynonyms, MagicHash, MultiParamTypeClasses, MultiWayIf, NoImplicitPrelude, NoMonomorphismRestriction, OverloadedStrings, PatternGuards, ParallelListComp, QuasiQuotes, RankNTypes, RecordWildCards, ScopedTypeVariables, StandaloneDeriving, TemplateHaskell, TupleSections, TypeFamilies, TypeOperators, UnboxedTuples
+  default-language:
+    Haskell2010
+  exposed-modules:
+    AsciiString
+  other-modules:
+    AsciiString.Prelude
+    AsciiString.FoldMs
+  build-depends:
+    base >=4.7 && <5,
+    bytestring >=0.10 && <0.11,
+    cereal >=0.5.5 && <0.6,
+    deferred-folds >=0.6.11 && <0.7,
+    foldl >=1.4 && <2,
+    hashable >=1.2.7 && <2,
+    primitive >=0.6.4 && <0.7,
+    primitive-extras >=0.6.3 && <0.7
+
+test-suite test
+  type:
+    exitcode-stdio-1.0
+  hs-source-dirs:
+    test
+  default-extensions:
+    Arrows, BangPatterns, ConstraintKinds, DataKinds, DefaultSignatures, DeriveDataTypeable, DeriveFoldable, DeriveFunctor, DeriveGeneric, DeriveTraversable, EmptyDataDecls, FlexibleContexts, FlexibleInstances, FunctionalDependencies, GADTs, GeneralizedNewtypeDeriving, LambdaCase, LiberalTypeSynonyms, MagicHash, MultiParamTypeClasses, MultiWayIf, NoImplicitPrelude, NoMonomorphismRestriction, OverloadedStrings, PatternGuards, ParallelListComp, QuasiQuotes, RankNTypes, RecordWildCards, ScopedTypeVariables, StandaloneDeriving, TemplateHaskell, TupleSections, TypeFamilies, TypeOperators, UnboxedTuples
+  default-language:
+    Haskell2010
+  main-is:
+    Main.hs
+  build-depends:
+    ascii-string,
+    cereal,
+    QuickCheck >=2.8.1 && <3,
+    quickcheck-instances >=0.3.11 && <0.4,
+    rerebase <2,
+    tasty >=0.12 && <2,
+    tasty-hunit >=0.9 && <0.11,
+    tasty-quickcheck >=0.9 && <0.11
diff --git a/library/AsciiString.hs b/library/AsciiString.hs
new file mode 100644
--- /dev/null
+++ b/library/AsciiString.hs
@@ -0,0 +1,104 @@
+module AsciiString
+(
+  AsciiString,
+  length,
+  fromSeptetList,
+  fromByteString,
+  fromShortByteString,
+  toSeptetList,
+  toByteString,
+  toShortByteString,
+)
+where
+
+import AsciiString.Prelude hiding (length)
+import qualified Data.List as List
+import qualified Data.ByteString as ByteString
+import qualified Data.ByteString.Short.Internal as ShortByteString
+import qualified DeferredFolds.UnfoldM as UnfoldM
+import qualified AsciiString.FoldMs as FoldMs
+import qualified Control.Foldl as Foldl
+import qualified PrimitiveExtras.PrimArray as PrimArray
+import qualified Data.Serialize as Serialize
+
+
+{-|
+Compact representation of ASCII string.
+-}
+data AsciiString = AsciiString {-# UNPACK #-} !Int {-# UNPACK #-} !(PrimArray Word8)
+
+deriving instance Eq AsciiString
+deriving instance Ord AsciiString
+deriving instance Generic AsciiString
+
+instance Hashable AsciiString where
+  hashWithSalt salt (AsciiString size (PrimArray ba)) =
+    hashByteArrayWithSalt ba 0 size salt
+
+instance Show AsciiString where
+  show = show . toByteString
+
+instance IsString AsciiString where
+  fromString = fromSeptetList . fmap (fromIntegral . ord)
+
+instance Serialize AsciiString where
+  put (AsciiString size (PrimArray ba)) = do
+    Serialize.put size
+    Serialize.putShortByteString (ShortByteString.SBS ba)
+  get = do
+    septetsAmount <- Serialize.get
+    let octetsAmount = div ((septetsAmount + 1) * 7) 8
+    ShortByteString.SBS ba <- Serialize.getShortByteString octetsAmount
+    return (AsciiString septetsAmount (PrimArray ba))
+
+
+{-| Get the amount of septets. -}
+length :: AsciiString -> Int
+length (AsciiString length _) = length
+
+{-| Construct from a list of septets encoded in 'Word8', ignoring the 8th bit. -}
+fromSeptetList :: [Word8] -> AsciiString
+fromSeptetList list = 
+  fromUnfoldM (List.length list) (UnfoldM.foldable list)
+
+{-|
+Convert from ByteString, ignoring each 8th bit in it.
+-}
+fromByteString :: ByteString -> AsciiString
+fromByteString byteString = 
+  fromUnfoldM (ByteString.length byteString) (UnfoldM.byteStringBytes byteString)
+
+{-|
+Convert from ShortByteString, ignoring each 8th bit in it.
+-}
+fromShortByteString :: ShortByteString -> AsciiString
+fromShortByteString byteString =
+  fromUnfoldM (ShortByteString.length byteString) (UnfoldM.shortByteStringBytes byteString)
+
+{-# INLINE fromUnfoldM #-}
+fromUnfoldM :: Int -> UnfoldM IO Word8 -> AsciiString
+fromUnfoldM size unfoldM =
+  AsciiString size (unsafeDupablePerformIO (UnfoldM.foldM (FoldMs.sizedSeptetPrimArrayFromSeptets size) unfoldM))
+
+{-| Convert to a list of septets represented by 'Word8' with the 8th bit always empty. -}
+toSeptetList :: AsciiString -> [Word8]
+toSeptetList = unsafeDupablePerformIO . UnfoldM.foldM (Foldl.generalize Foldl.list) . toOctetUnfoldM
+
+{-| Convert to bytestring. -}
+toByteString :: AsciiString -> ByteString
+toByteString = unsafeDupablePerformIO . runSizedFoldM FoldMs.sizedByteStringFromOctets
+
+{-| Convert to short bytestring. -}
+toShortByteString :: AsciiString -> ShortByteString
+toShortByteString = primArraySBS . unsafeDupablePerformIO . runSizedFoldM PrimArray.elementsFoldM where
+  primArraySBS :: PrimArray Word8 -> ShortByteString
+  primArraySBS (PrimArray ba) = ShortByteString.SBS ba
+
+toOctetUnfoldM :: AsciiString -> UnfoldM IO Word8
+toOctetUnfoldM (AsciiString size pa) = let
+  takeLast = rem (7 * succ size) 8 /= 0
+  in UnfoldM.mapFoldMInput (FoldMs.overSeptets takeLast) (UnfoldM.primArray pa)
+
+runSizedFoldM :: (Int -> FoldM IO Word8 output) -> AsciiString -> IO output
+runSizedFoldM fold asciiString =
+  UnfoldM.foldM (fold (length asciiString)) (toOctetUnfoldM asciiString)
diff --git a/library/AsciiString/FoldMs.hs b/library/AsciiString/FoldMs.hs
new file mode 100644
--- /dev/null
+++ b/library/AsciiString/FoldMs.hs
@@ -0,0 +1,67 @@
+module AsciiString.FoldMs
+where
+
+import AsciiString.Prelude
+import qualified Data.ByteString.Internal as ByteString
+
+
+{-|
+Converts a fold over septets (still encoded in octets) into a fold over actual octets.
+-}
+overSeptets :: Monad m => Bool -> FoldM m Word8 x -> FoldM m Word8 x
+overSeptets takeLast (FoldM septStep septInit septExtract) = FoldM octStep octInit octExtract where
+  octInit = Product3 0 0 <$> septInit
+  octStep (Product3 unconsumedBitsAmount unconsumedOctet septState) octet =
+    case unconsumedBitsAmount of
+      0 -> Product3 1 (unsafeShiftR octet 7) <$> septStep septState (clearBit octet 7)
+      6 -> Product3 7 (unsafeShiftR octet 1) <$> septStep septState (unconsumedOctet .|. unsafeShiftR (unsafeShiftL octet 7) 1)
+      7 -> Product3 1 (unsafeShiftR octet 7) <$> septStepTwice unconsumedOctet (clearBit octet 7)
+      _ -> let
+        bitsToConsume = 7 - unconsumedBitsAmount
+        newUnconsumedBitsAmount = 8 - bitsToConsume
+        newUnconsumedOctet = unsafeShiftR octet bitsToConsume
+        septet = clearBit (unconsumedOctet .|. unsafeShiftL octet unconsumedBitsAmount) 7
+        in Product3 newUnconsumedBitsAmount newUnconsumedOctet <$> septStep septState septet
+    where
+      septStepTwice septet1 septet2 = do
+        state1 <- septStep septState septet1
+        septStep state1 septet2
+  octExtract (Product3 unconsumedBitsAmount unconsumedOctet septState) =
+    if takeLast && unconsumedBitsAmount == 7
+      then septExtract =<< septStep septState unconsumedOctet
+      else septExtract septState
+
+sizedByteStringFromOctets :: Int -> FoldM IO Word8 ByteString
+sizedByteStringFromOctets size = FoldM step init extract where
+  init = Product2 0 <$> mallocBytes size
+  step (Product2 index ptr) octet = do
+    poke (plusPtr ptr index) octet
+    return (Product2 (succ index) ptr)
+  extract (Product2 _ ptr) = do
+    fp <- newForeignPtr finalizerFree ptr
+    return (ByteString.PS fp 0 size)
+
+{-# INLINABLE sizedSeptetPrimArrayFromSeptets #-}
+sizedSeptetPrimArrayFromSeptets :: Int -> FoldM IO Word8 (PrimArray Word8)
+sizedSeptetPrimArrayFromSeptets septetsAmount = FoldM step init extract where
+  init = do
+    let size = div (septetsAmount * 7 + 7) 8
+    mpa <- newPrimArray size
+    return (Product4 mpa 0 0 0)
+  step (Product4 mpa octetIndex bitIndex unfinishedOctet) inputOctet =
+    case bitIndex of
+      0 -> return (Product4 mpa octetIndex 7 inputOctet)
+      1 -> let
+        finishedOctet = unfinishedOctet .|. unsafeShiftL inputOctet 1
+        in do
+          writePrimArray mpa octetIndex finishedOctet
+          return (Product4 mpa (succ octetIndex) 0 0)
+      _ -> let
+        finishedOctet = unfinishedOctet .|. unsafeShiftL inputOctet bitIndex
+        newUnfinishedOctet = unsafeShiftR inputOctet (8 - bitIndex)
+        in do
+          writePrimArray mpa octetIndex finishedOctet
+          return (Product4 mpa (succ octetIndex) (pred bitIndex) newUnfinishedOctet)
+  extract (Product4 mpa octetIndex bitIndex unfinishedOctet) = do
+    when (bitIndex /= 0) (writePrimArray mpa octetIndex unfinishedOctet)
+    unsafeFreezePrimArray mpa
diff --git a/library/AsciiString/Prelude.hs b/library/AsciiString/Prelude.hs
new file mode 100644
--- /dev/null
+++ b/library/AsciiString/Prelude.hs
@@ -0,0 +1,114 @@
+module AsciiString.Prelude
+(
+  module Exports,
+  Product2(..),
+  Product3(..),
+  Product4(..),
+  showBits,
+)
+where
+
+
+-- base
+-------------------------
+import Control.Applicative as Exports
+import Control.Arrow as Exports
+import Control.Category as Exports
+import Control.Concurrent as Exports
+import Control.Exception as Exports
+import Control.Monad as Exports hiding (mapM_, sequence_, forM_, msum, mapM, sequence, forM)
+import Control.Monad.IO.Class as Exports
+import Control.Monad.Fix as Exports hiding (fix)
+import Control.Monad.ST as Exports
+import Data.Bits as Exports
+import Data.Bool as Exports
+import Data.Char as Exports
+import Data.Coerce as Exports
+import Data.Complex as Exports
+import Data.Data as Exports
+import Data.Dynamic as Exports
+import Data.Either as Exports
+import Data.Fixed as Exports
+import Data.Foldable as Exports
+import Data.Function as Exports hiding (id, (.))
+import Data.Functor as Exports
+import Data.Functor.Identity as Exports
+import Data.Int as Exports
+import Data.IORef as Exports
+import Data.Ix as Exports
+import Data.List as Exports hiding (sortOn, isSubsequenceOf, uncons, concat, foldr, foldl1, maximum, minimum, product, sum, all, and, any, concatMap, elem, foldl, foldr1, notElem, or, find, maximumBy, minimumBy, mapAccumL, mapAccumR, foldl')
+import Data.Maybe as Exports
+import Data.Monoid as Exports hiding (Last(..), First(..), (<>))
+import Data.Ord as Exports
+import Data.Proxy as Exports
+import Data.Ratio as Exports
+import Data.Semigroup as Exports
+import Data.STRef as Exports
+import Data.String as Exports
+import Data.Traversable as Exports
+import Data.Tuple as Exports
+import Data.Unique as Exports
+import Data.Version as Exports
+import Data.Word as Exports
+import Debug.Trace as Exports
+import Foreign as Exports hiding (void)
+import GHC.Conc as Exports hiding (withMVar, threadWaitWriteSTM, threadWaitWrite, threadWaitReadSTM, threadWaitRead)
+import GHC.Exts as Exports (lazy, inline, sortWith, groupWith)
+import GHC.Generics as Exports (Generic)
+import GHC.IO.Exception as Exports
+import Numeric as Exports
+import Prelude as Exports hiding (concat, foldr, mapM_, sequence_, foldl1, maximum, minimum, product, sum, all, and, any, concatMap, elem, foldl, foldr1, notElem, or, mapM, sequence, id, (.))
+import System.Environment as Exports
+import System.Exit as Exports
+import System.IO as Exports
+import System.IO.Error as Exports
+import System.IO.Unsafe as Exports
+import System.Mem as Exports
+import System.Mem.StableName as Exports
+import System.Timeout as Exports
+import Text.ParserCombinators.ReadP as Exports (ReadP, ReadS, readP_to_S, readS_to_P)
+import Text.ParserCombinators.ReadPrec as Exports (ReadPrec, readPrec_to_P, readP_to_Prec, readPrec_to_S, readS_to_Prec)
+import Text.Printf as Exports (printf, hPrintf)
+import Text.Read as Exports (Read(..), readMaybe, readEither)
+import Unsafe.Coerce as Exports
+
+-- bytestring
+-------------------------
+import Data.ByteString as Exports (ByteString)
+import Data.ByteString.Short as Exports (ShortByteString)
+
+-- primitive
+-------------------------
+import Data.Primitive.PrimArray as Exports hiding (sizeOf, alignment)
+
+-- cereal
+-------------------------
+import Data.Serialize as Exports
+
+-- foldl
+-------------------------
+import Control.Foldl as Exports (Fold(..), FoldM(..))
+
+-- deferred-folds
+-------------------------
+import DeferredFolds.Unfold as Exports (Unfold(..))
+import DeferredFolds.UnfoldM as Exports (UnfoldM(..))
+
+-- hashable
+-------------------------
+import Data.Hashable as Exports
+
+
+data Product2 a b = Product2 !a !b
+
+data Product3 a b c = Product3 !a !b !c
+
+data Product4 a b c d = Product4 !a !b !c !d
+
+showBits :: forall a. (Integral a, Show a, FiniteBits a) => a -> String
+showBits = padL (finiteBitSize (undefined :: a)) '0' . ($ "") . showIntAtBase 2 intToDigit
+
+padL :: Int -> Char -> String -> String
+padL n c s
+    | length s < n  = s ++ replicate (n - length s) c
+    | otherwise     = s
diff --git a/test/Main.hs b/test/Main.hs
new file mode 100644
--- /dev/null
+++ b/test/Main.hs
@@ -0,0 +1,49 @@
+module Main where
+
+import Prelude
+import Test.QuickCheck.Instances
+import Test.Tasty
+import Test.Tasty.Runners
+import Test.Tasty.HUnit
+import Test.Tasty.QuickCheck
+import qualified Test.QuickCheck as QuickCheck
+import qualified Test.QuickCheck.Property as QuickCheck
+import qualified Data.ByteString as ByteString
+import qualified Data.ByteString.Short as ShortByteString
+import qualified Data.Serialize as Serialize
+import qualified AsciiString
+
+
+main =
+  defaultMain $
+  testGroup "All" $ let
+    listGen = do
+      length <- QuickCheck.choose (0, 100)
+      replicateM length (QuickCheck.choose (0, 127))
+    stringGen = fmap chr <$> listGen
+    byteStringGen = ByteString.pack <$> listGen
+    shortByteStringGen = ShortByteString.pack <$> listGen
+    asciiStringGen = AsciiString.fromSeptetList <$> listGen
+    in
+      [
+        testCase "Reduces the length" $ do
+          assertEqual "" 6 (AsciiString.length (AsciiString.fromByteString "123456"))
+          assertEqual "" 7 (AsciiString.length (AsciiString.fromByteString "1234567"))
+          assertEqual "" 8 (AsciiString.length (AsciiString.fromByteString "12345678"))
+          assertEqual "" 14 (AsciiString.length (AsciiString.fromByteString "12345678901234"))
+        ,
+        testProperty "List roundtrip" $ forAll listGen $ \ list ->
+        list === AsciiString.toSeptetList (AsciiString.fromSeptetList list)
+        ,
+        testProperty "ByteString Roundtrip" $ forAll byteStringGen $ \ byteString ->
+        byteString === AsciiString.toByteString (AsciiString.fromByteString byteString)
+        ,
+        testProperty "ShortByteString Roundtrip" $ forAll shortByteStringGen $ \ sbs ->
+        sbs === AsciiString.toShortByteString (AsciiString.fromShortByteString sbs)
+        ,
+        testProperty "String Roundtrip" $ forAll stringGen $ \ string ->
+        show string === show (fromString string :: AsciiString.AsciiString)
+        ,
+        testProperty "Cereal Roundtrip" $ forAll asciiStringGen $ \ asciiString ->
+        Right asciiString === Serialize.decode (Serialize.encode asciiString)
+      ]
