This Indiegogo campaign is so obviously impossible that I suspect it might be some kind of elaborate educational hoax teaching people not to trust Indiegogo campaigns. But in case it's not, spoiler, it doesn't work.
Delta Lambda claims to to compress your existing data on you phone up to 1000 times by using special algorithms.
Unfortunately this is mathematically impossible. Data has a limit in how much it can be compressed. The limit is based on the "entropy" of the data (a measure of how much it resembles random data). The vast majority of data on your hard drive (photos, videos, audio, apps) is already compressed by advanced algorithms that approach the theoretical limits. In addition they are compressed with lossy compression, meaning they lose data when compressed. Even pushing closer to theoretical limits, and even with a lossy algorithm, you'd be hard pressed to get 10% more space from you hard drive, let alone 1000x with a LOSSLESS algorith. Hence this chart is a joke:
So what's going on here? Scam? Hoax? It seems obvious that loads of computer scientists would immediately explain why it won't work. So it's either a hoax, or a scam aimed at people disconnected from reality.
The problem is that the precise limit on how much something can be compressed without loss is an unsolved problem (Kolmogorov complexity), so it's possible that you could use this to argue that you've found a really really good solution. Information theory in general is also complicated, so possibly people who don't trust scientists might fall for it.
A simple test here is if the algorithm has won any of the data compression prizes out there. There's a few, and their goals are much lower than what Delta Lambda can actually do. Here one that should get them 50,000 euros.
The current record is 1/16th the size. DL claims 1/1000th. Since they have not stepped forward to claim their prize, this seems pretty obvious that it does not work.