Lossy and lossless compression are terms that describe whether or not, in the compression of file, all original data can be recovered when the file is uncompressed.
Lossy compression reduces a file by permanently eliminating certain information. When the file is uncompressed, only a part of the original information is still there (however, it usually goes unnoticed). Lossy compression is generally used for video and audio where a certain amount of information loss will not be detected.
The JPEG image file uses lossy compression.
With lossless compression, every bit of data that was originally in the file remains after the file is uncompressed. All the information is restored completely. Generally, this type of compression is used for text or spreadsheet files where the loss of data would pose a potential problem.
The GIF image file uses lossless compression.
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