Since access to quantum devices capable of quantum computing is still extremely limited, it is of interest to simulate quantum computations on a classical computer. Representing the state of $n$ qubits as a vector takes $2^n$ elements, which greatly restricts the number of qubits one can consider in such simulations.
Can one use a representation1 that is more compact, in the sense that it uses less memory and/or computational power than the simple vector representation? How does it work?
While easy to implement, it is clear that the vector representation is wasteful for states that exhibit sparsity and/or redundancy in their vector representation. For a concrete example, consider the 3-qubit state $(1/\sqrt{3}, 1/\sqrt{3},0,0,0,-1/\sqrt{3}, 0,0)^T$. It has $2^3$ elements but they only assume $3$ possible values, with most of the elements being $0$. Of course, to be useful in simulating a quantum computation we would also need to consider how to represent gates and the action of gates on qubits, and including something about these would be welcome, but I would be happy to hear just about qubits too.
1. Notice that I am asking about the representations, not software, libraries or articles that might utilize/present such representations. If you present and explain a representation you are very welcome to mention where it is already used though.