We present an algorithm which computes the Lempel-Ziv factorization of a word
W of length n on an alphabet Σ of size σ online in the
following sense: it reads W starting from the left, and, after reading each
r=O(logσn) characters of W, updates the Lempel-Ziv
factorization. The algorithm requires O(nlogσ) bits of space and O(n
\log^2 n) time. The basis of the algorithm is a sparse suffix tree combined
with wavelet trees