Here is the compact version:

1. Initialise threshold and the first Cluster centre (first leader)

   • Choose a threshold distance (ε) that determines when a new leader (cluster center) is created.

   • The first data point becomes the first leader (cluster center).

2. Process Each New Data Point Sequentially

   • For each incoming point x, calculate its distance to all existing cluster leaders.

   • assign the point x to the cluster leader from which it is at minimum distance.

   • If the distance to all leaders is greater than ε, create a new leader (new cluster center) and assign the point to it.

3. Repeat Until All Points Are Processed

   • Continue assigning points to existing clusters or creating new clusters based on the threshold distance (ε), till all the points are exhausted.