GIF files
Graphical Interchange Format is where the original image is compressed. They have the advantage that they are small in file size, however a maximum of 256 colours can be used so they don't look like the original image. They are good for images and photographs on the web.
GIF files use 8 bits for colour, compression, is used for simple graphics and transparency.
JPEG
Joint Photographic Expert Group are ideal for photos, the original image is compressed and uses 16.7 million colours.
JPEG files use 24 bits for colour, compression, is used for images with continous colour (e.g. photos) and transparency.
Other common file formats are PNG (Portable Network Graphics), TIFF (Tagged Image File Format), PSD (PhotoShop Document) and BMP (BitMaP)
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