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JPG is optimized for photographs and similar continuous tone images that contain many, many colors. It can achieve astounding compression ratios even while maintaining very high image quality. GIF compression is unkind to such images. JPG works by analyzing images and discarding kinds of information that the eye is least likely to notice. It stores information as 24 bit color. Important: the degree of compression of JPG is adjustable. At moderate compression levels of photographic images, it is very difficult for the eye to discern any difference from the original, even at extreme magnification. Compression factors of more than 20 are often quite acceptable. Better graphics programs, such as Paint Shop Pro and Photoshop, allow you to view the image quality and file size as a function of compression level, so that you can conveniently choose the balance between quality and file size.

TIFF is, in principle, a very flexible format that can be lossless or lossy. The details of the image storage algorithm are included as part of the file. In practice, TIFF is used almost exclusively as a lossless image storage format that uses no compression at all. Most graphics programs that use TIFF do not compression. Consequently, file sizes are quite big. (Sometimes a lossless compression algorithm called LZW is used, but it is not universally supported.)

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