A method of displaying an image having M by N pixels on a display having M by N pixels, the image being a still image or a frame of a video, wherein the image and the display of M by N pixels is divided into macro-pixels, each macro-pixel being a subarray of n x by n y pixels, x and y being rectangular coordinates spanning the macro-pixel dimensions, the method comprising: calculating, for each macro-pixel, a sequence of macro-pixel image coefficients (D uv) by integrating the image information f c (x,y) of the corresponding subarray of n x by n y pixels with orthogonal Walsh basis functions W uv (x, y), u and v being the basis function indices, wherein the integration is determined as a summation of the product of the image information f c (x,y) of each pixel of the subarray of n x by n y pixels and an orthogonal Walsh basis function W uv (x,y), such that a macro-pixel image coefficient is D uv = ∑ x = 0 n x - 1 ∑ y = 0 n y - 1 f c x y * w uv x y; constructing the image, for each macro-pixel, from a sequence of image components, each image component being generated on the basis of a corresponding macro-pixel image coefficient (D uv) and Walsh basis function W uv (x,y), by successively displaying, within each macro-pixel, pixels selected to be in the on-state by a respective spatial pattern W* uv (x,y), each pixel selected by a spatial pattern being displayed with a respective same predetermined light intensity, wherein each spatial pattern W* uv (x, y) of the sequence of spatial patterns is derived from a corresponding Walsh basis function W uv (x,y) so that a pixel is selected to be in the on-state where the Walsh basis function has the value of +1 and is selected to be in the off-state where the Walsh basis function has the value of -1, wherein the spatial pattern W* uv (x, y), except for u = v = 0, is inverted if the corresponding macro-pixel image coefficient (D uv) is negative, wherein said predetermined light intensity for each spatial pattern corresponds to twice the absolute value of the corresponding macro-pixel image coefficient (D uv), except for a first spatial pattern derived from a first Walsh basis function (w 00) having all 1's, in which case said predetermined light intensity corresponds to twice a first macro-pixel image coefficient (D 00) corrected by subtracting the sum of the absolute values of all macro-pixel image coefficients (D uv). calculating, for each macro-pixel, a sequence of macro-pixel image coefficients (D uv) by integrating the image information f c (x,y) of the corresponding subarray of n x by n y pixels with orthogonal Walsh basis functions W uv (x, y), u and v being the basis function indices, wherein the integration is determined as a summation of the product of the image information f c (x,y) of each pixel of the subarray of n x by n y pixels and an orthogonal Walsh basis function W uv (x,y), such that a macro-pixel image coefficient is D uv = ∑ x = 0 n x - 1 ∑ y = 0 n y - 1 f c x y * w uv x y; constructing the image, for each macro-pixel, from a sequence of image components, each image component being generated on the basis of a corresponding macro-pixel image coefficient (D uv) and Walsh basis function W uv (x,y), by successively displaying, within each macro-pixel, pixels selected to be in the on-state by a respective spatial pattern W* uv (x,y), each pixel selected by a spatial pattern being displayed with a respective same predetermined light intensity, wherein each spatial pattern W* uv (x, y) of the sequence of spatial patterns is derived from a corresponding Walsh basis function W uv (x,y) so that a pixel is selected to be in the on-state where the Walsh basis function has the value of +1 and is selected to be in the off-state where the Walsh basis function has the value of -1, wherein the spatial pattern W* uv (x, y), except for u = v = 0, is inverted if the corresponding macro-pixel image coefficient (D uv) is negative, wherein said predetermined light intensity for each spatial pattern corresponds to twice the absolute value of the corresponding macro-pixel image coefficient (D uv), except for a first spatial pattern derived from a first Walsh basis function (w 00) having all 1's, in which case said predetermined light intensity corresponds to twice a first macro-pixel image coefficient (D 00) corrected by subtracting the sum of the absolute values of all macro-pixel image coefficients (D uv).