We study two basic problems regarding edit error, i.e. document exchange and error correcting codes for edit errors (insdel codes). For message length $n$ and edit error upper bound $k$, it is known that in both problems the optimal sketch size or the optimal number of redundant bits is $Θ(k \log \frac{n}{k})$. However, known constructions are far from achieving these bounds. We significantly improve previous results on both problems. For document exchange, we give an efficient deterministic protocol with sketch size $O(k\log^2 \frac{n}{k})$. This significantly improves the previous best known deterministic protocol, which has sketch size $O(k^2 + k \log^2 n)$ (Belazzougui15). For binary insdel codes, we obtain the following results: 1. An explicit binary insdel code which encodes an $n$-bit message $x$ against $k$ errors with redundancy $O(k \log^2 \frac{n}{k})$. In particular this implies an explicit family of binary insdel codes that can correct $\varepsilon$ fraction of insertions and deletions with rate $1-O(\varepsilon \log^2 (\frac{1}{\varepsilon}))=1-\widetilde{O}(\varepsilon)$. 2. An explicit binary insdel code which encodes an $n$-bit message $x$ against $k$ errors with redundancy $O(k \log n)$. This is the first explicit construction of binary insdel codes that has optimal redundancy for a wide range of error parameters $k$, and this brings our understanding of binary insdel codes much closer to that of standard binary error correcting codes. In obtaining our results we introduce the notion of \emph{$\varepsilon$-self matching hash functions} and \emph{$\varepsilon$-synchronization hash functions}. We believe our techniques can have further applications in the literature.