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Hashing has emerged as a popular technique for fast nearest neighbor search in gi-gantic databases. In particular, learning based hashing has received considerable attention due to its appealing storage and search efficiency. However, the perfor-mance of most unsupervised learning based hashing methods deteriorates rapidly as the hash code length increases. We argue that the degraded performance is due to inferior optimization procedures used to achieve discrete binary codes. This paper presents a graph-based unsupervised hashing model to preserve the neigh-borhood structure of massive data in a discrete code space. We cast the graph hashing problem into a discrete optimization framework which directly learns the binary codes. A tractable alternating maximization algorithm is then proposed to explicitly deal with the discrete constraints, yielding high-quality codes to well capture the local neighborhoods. Extensive experiments performed on four large datasets with up to one million samples show that our discrete optimization based graph hashing method obtains superior search accuracy over state-of-the-art un-supervised hashing methods, especially for longer codes. 1