This paper presents a novel hash-based distributed video coding (DVC) scheme that combines an accurate online correlation channel estimation (CCE) algorithm with an efficient side information refinement strategy, delivering state-of-the-art compression performance. The proposed DVC scheme applies layered bit-plane Wyner-Ziv coding and successively refines the CCE bit-plane-per-bit-plane during decoding. In addition, the side information is succes-sively refined upon decoding of distinct refinement levels, grouping specific frequency bands of the discrete cosine transform. The proposed system not only outperforms the benchmark in DVC but several state-of-the-art side infor-mation refinement techniques and CCE methods as well.