arXiv:2609.35126v2 Announce Type: replace Abstract: This work presents an optimized compression framework for direct time-of-flight (dToF) light detection and ranging (LiDAR), using an accurate, compact timestamp-encoding strategy to address the high data-rate bottleneck from single-photon timing information in single-photon avalanche diode (SPAD) arrays. We propose a hardware-friendly timestamp-to-depth framework in which a sparse single-photon encoding strategy, namely coarse-to-fine spline sketches (CFSS), projects photon timestamps into fine-grained, low-dimensional representations, called sketch values. CFSS converts timestamps on-the-fly to sketch values and accumulates them with lower memory consumption, without constructing histograms, thereby saving on-chip/device memory. CFSS's closed-form solution for ToF retrieval ensures iteration-free reconstruction. Compared with the conventional sketched-LiDAR framework, the proposed method retains the same compression ratio in the single-peak case, ranging from hundreds$\times$ to thousands$\times$ depending on the accuracy-complexity trade-off, while improving depth-estimation accuracy. Both synthetic and real datasets are used to validate the performance. The CFSS framework is further extended to two-peak scenarios, enabling recovery of objects obscured by partially occluding camouflage and uniformly scattering semi-transparent media. Firmware implementation is also investigated by clearly separating online hardware processing from offline software workloads.