This document discusses various compiler optimization techniques, focusing on peephole optimization. It defines optimization as transforming code to run faster or use less memory without changing functionality. Optimization can be machine-independent, transforming code regardless of hardware, or machine-dependent, tailored to a specific architecture. Peephole optimization examines small blocks of code and replaces them with faster or smaller equivalents using techniques like constant folding, strength reduction, null sequence elimination, and algebraic laws. Common replacement rules aim to improve performance, reduce memory usage, and decrease code size.