Digital Camera FAQ Digital Photography FAQ File Formats File formats are the time capsules you'll use to retain your images for the future.
Lossless compression loses none of the image information during compression and decompression.
Lossy compression as its name says removes some of the original photographic detail. Lossy compression can reduce the size of image files to a far greater extent than lossless compression. JPG is a lossy technique that is designed to compress color and grayscale continuous-tone images. The information discarded at lower levels of JPG compression is designed to be information that the human eye cannot detect. Please note that lossy formats such as JPG may result in the loss of additional detail each time you open and save a file.