Is this index algorithm worth anything?
If I understand correctly, you have designed a data structure for what is known in the scientific literature as dynamic dictionary problem: keep an index I that can dynamically maintain a set S supporting queries like "is $x \in S$?" under a stream of insertions/deletions.

There are many solutions to this problem. The classical solution is to use a dynamic perfect hash function, which takes $O(1)$ worst case lookup time and $O(1)$ expected amortized update time (it's randomized) and $O(n)$ bits of space.

An arguably more practical solution to your problem is given by Cuckoo hashing, that has the same theoretical bounds of the previous solution but is much easier to understand and implement, and has reportedly better experimental performances.

These solution take much less space than your solution and have favorable time bounds (even if the bound on the update time hold only in expectation).

Moreover, your claim that "add/deletion have no penalty" is unclear to me. If your claim is that an insertion/deletion takes $O(1)$ time, then that's obviously impossible because you cannot build a data structure of size $\Omega(n \log n)$ with time complexity $O(n)$, and if you mean that they take as much time as a look-up, then your solution is no better than any self-adjusting binary tree, like AVLs or Splay trees.

Provided that this problem is well-studied and that there are quite a few high-quality implementations around, I think it is quite hard to design a new competitor that might enjoy commercial success.