File compression is a means of reducing file size by encoding the file contents.
Because compressed files are smaller and easier to maneuver, file compression is commonly used when storing files or when transferring files from one location to another. The smaller a file is, the less storage space it requires and the less time it takes to transfer to different locations. File compression is a type of computer shorthand. When you compress a file, the compression software looks for a series of repeating characters or bits in the file. When you apply a decompression program to a compressed file, the software reads the file and replaces the tokens with the original data, inflating the file back to its original size.