Update documentation for performance optimizations

- Add performance features to README.md including LZ4 compression, battery optimization, and network efficiency
- Add comprehensive Performance Optimizations section to WHITEPAPER.md with technical diagrams
- Update architecture diagram to include Compression Service and Battery Optimizer
- Document future performance enhancements including WiFi Direct transport

WHITEPAPER.md

@@ -46,6 +46,8 @@ graph TB
         ENC[Encryption Service]
         RETRY[Message Retry Service]
         RETAIN[Message Retention Service]
+        COMP[Compression Service]
+        BATT[Battery Optimizer]
     end
     
     subgraph "Mesh Network Layer"
@@ -60,8 +62,8 @@ graph TB
         BLE[BLE Central/Peripheral]
     end
     
-    UI & CMD & ROOM --> ENC & RETRY & RETAIN
-    ENC & RETRY & RETAIN --> ROUTE & RELAY & STORE
+    UI & CMD & ROOM --> ENC & RETRY & RETAIN & COMP & BATT
+    ENC & RETRY & RETAIN & COMP & BATT --> ROUTE & RELAY & STORE
     ROUTE & RELAY & STORE --> PROTO & FRAG & BLE
     
     style UI fill:#e1f5fe
@@ -70,6 +72,8 @@ graph TB
     style ENC fill:#f3e5f5
     style RETRY fill:#f3e5f5
     style RETAIN fill:#f3e5f5
+    style COMP fill:#f3e5f5
+    style BATT fill:#f3e5f5
     style ROUTE fill:#e8f5e9
     style RELAY fill:#e8f5e9
     style STORE fill:#e8f5e9
@@ -466,6 +470,81 @@ classDiagram
 | ROOM_ANNOUNCE | 0x08 | Room status announcement |
 | ROOM_RETENTION | 0x09 | Room retention policy |
 
+## Performance Optimizations
+
+### Message Compression
+
+bitchat implements intelligent message compression to reduce bandwidth usage:
+
+<div align="center">
+
+```mermaid
+graph LR
+    M[Message] --> C{Size > 100 bytes?}
+    C -->|Yes| E[Entropy Check]
+    C -->|No| T[Transmit Raw]
+    E --> H{High Entropy?}
+    H -->|No| L[LZ4 Compress]
+    H -->|Yes| T
+    L --> S[30-70% Smaller]
+    S --> T
+    
+    style M fill:#e3f2fd
+    style L fill:#c8e6c9
+    style S fill:#a5d6a7
+```
+
+</div>
+
+The compression system:
+- **LZ4 Algorithm**: Fast compression/decompression optimized for real-time use
+- **Entropy detection**: Skips compression for already-compressed data
+- **Threshold-based**: Only compresses messages larger than 100 bytes
+- **Transparent**: Compression/decompression handled automatically
+
+### Battery-Aware Operation
+
+The system dynamically adjusts behavior based on battery state:
+
+<div align="center">
+
+```mermaid
+graph TD
+    B[Battery Monitor] --> C{Charging?}
+    C -->|Yes| P[Performance Mode]
+    C -->|No| L{Level?}
+    L -->|>60%| P
+    L -->|30-60%| BA[Balanced Mode]
+    L -->|10-30%| PS[Power Saver]
+    L -->|<10%| ULP[Ultra Low Power]
+    
+    P --> F1[3s scan, 2s pause<br/>20 connections<br/>Continuous advertising]
+    BA --> F2[2s scan, 3s pause<br/>10 connections<br/>5s advertising intervals]
+    PS --> F3[1s scan, 8s pause<br/>5 connections<br/>15s advertising intervals]
+    ULP --> F4[0.5s scan, 20s pause<br/>2 connections<br/>30s advertising intervals]
+    
+    style P fill:#4caf50,color:#fff
+    style BA fill:#8bc34a
+    style PS fill:#ffc107
+    style ULP fill:#f44336,color:#fff
+```
+
+</div>
+
+Power modes affect:
+- **Scan duty cycle**: How often and how long we scan for peers
+- **Connection limits**: Maximum simultaneous peer connections
+- **Advertising intervals**: How often we broadcast our presence
+- **Message aggregation**: Batching window for outgoing messages
+
+### Optimized Bloom Filters
+
+For efficient duplicate message detection:
+- **Bit-packed storage**: Uses UInt64 arrays for memory efficiency
+- **SHA256 hashing**: High-quality hash distribution
+- **Dynamic sizing**: Adapts to network size (small: 500 items, large: 5000 items)
+- **Low false positive rate**: 0.01 (1%) for accurate duplicate detection
+
 ## Privacy Features
 
 bitchat implements several privacy-enhancing mechanisms.
@@ -640,6 +719,44 @@ sequenceDiagram
 
 </div>
 
+## Future Performance Enhancements
+
+### WiFi Direct Transport
+
+A planned enhancement will add WiFi Direct as an alternative transport layer:
+
+- **100x bandwidth**: 250+ Mbps vs BLE's 1-3 Mbps  
+- **Extended range**: 100-200m vs BLE's 10-30m
+- **Automatic handoff**: Seamlessly switch between BLE and WiFi Direct
+- **Hybrid mesh**: Some nodes BLE-only, others WiFi-capable
+- **Battery-aware**: Only activate for large transfers or when charging
+
+### Alternative Transports
+
+Future transport options being considered:
+
+- **Ultrasonic Communication**: 1-10 kbps through air, works when radio is jammed
+- **LoRa (Long Range)**: 2-15km range for disaster scenarios
+- **Transport bonding**: Use multiple simultaneously for redundancy
+
+### Transport Protocol Interface
+
+The planned architecture will abstract transport selection:
+
+```swift
+protocol TransportProtocol {
+    var transportType: TransportType { get }
+    var isAvailable: Bool { get }
+    func send(_ packet: BitchatPacket, to peer: PeerID?)
+}
+
+class TransportManager {
+    func sendOptimal(_ packet: BitchatPacket, to peer: PeerID?) {
+        // Choose based on: message size, battery, available transports
+    }
+}
+```
+
 ## Future Considerations: Network Bridge Extension
 
 While bitchat is designed to operate without internet infrastructure, there are scenarios where selective network bridging could enhance its capabilities without compromising its core principles. The Nostr protocol presents a particularly interesting integration opportunity.