NOT a good algorithm. The reason that block algorithms work so well is that they take a BLOCK of values and essentially split up the values around based on the key. Only if you have a key can you put the block back together into its original values. Encrypting character by character allows for logical deduction of the original values. Do you know how hard it is to create a bruteforce cracker of this algorithm? Probably half an hour once i analyze it better. Sorry buddy, but thanks but no thanks.