&lt;p&gt;Further refinements to the FOSS technologies are focusing on &amp;ldquo;smart&amp;rdquo; sensing techniques that adjust sensing parameters as needed in real time so that only the necessary amount of data is acquired &amp;ndash; no more, no less. Traditional FOSS signal processing is based on Fourier transforms that break up the length of the fiber into analysis sections that are equal in length along the whole fiber. If high resolution is required along one portion of the fiber, the whole fiber must be processed at that resolution. Wavelet transforms make it possible to efficiently break up the length of the fiber into analysis sections that vary in length. If high resolution is required along one portion of the fiber, only that portion is processed at high resolution, and the rest of the fiber can be processed at the lower resolution.&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Work to date&lt;/strong&gt;: The team has developed a C language prototype of a wavelet-based signal processing algorithm. This static form currently operates at half the speed of the Fourier-based algorithm but it will be able to operate 3-4 times faster when optimized.&amp;nbsp;The team has also developed a LabVIEW prototype of the adaptive form of the algorithm. This form provides real-time adaptive spatial resolution.&amp;nbsp;For example: when strain on a wing increases during flight, the software will automatically increase the resolution on the part of the fiber that is under strain.&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Looking ahead&lt;/strong&gt;: Next steps involve optimizing the code and implementing it on a digital signal processing (DSP) chip.&amp;nbsp;A patent application for the wavelet algorithm has been filed with the USPTO.&lt;/p&gt;&lt;p&gt;&lt;strong&gt;Benefits&lt;/strong&gt;&lt;/p&gt;&lt;ul&gt;&lt;li&gt;&lt;strong&gt;Improved efficiency&lt;/strong&gt;: Offers precision measurement only where it is needed rather than on the entire fiber&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Faster signal processing&lt;/strong&gt;: Data can be processed at different resolutions at different fiber segments&lt;/li&gt;&lt;li&gt;&lt;strong&gt;Adaptive&lt;/strong&gt;: Automatically selects optimum resolution based on data received&lt;/li&gt;&lt;/ul&gt;&lt;p&gt;&lt;strong&gt;Applications&lt;/strong&gt;&lt;/p&gt;&lt;ul&gt;&lt;li&gt;Strain sensing&lt;/li&gt;&lt;li&gt;Temperature measurements&lt;/li&gt;&lt;/ul&gt;