JPG's are often used for web sites and email as they are generally smaller file sizes as they are lossy meaning that some image quality is lost when the JPG is compressed and saved. The resultant 'lossy' file means that quality can never be recovered. The JPG format is often used in digital camera memory cards. The JPG file is a great format as it often manages to compress files to 1/10 of the size of the original file which is especially good for saving on bandwidth.
JPG is a graphical file format for editing still images, it offers a symmetrical compression technique which is processor intensive and time consiming in both compression and decompression. JPEG is a joint standard of the International Telecommunications Union (ITU-T T.81) and the International Organization for Standardization (ISO 10918-1). JPEG involves a lossy compression mechanism using discrete cosine transform (DCT). Compression rates of 100:1 can be achieved, although the loss is noticeable at that level. Compression rates of 10:1 or 20:1 yield little degradation in image quality.
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BMP is a standard image file format which was historically used by computers running the Windows operating system. The format is more commonly know as Bitmap files. The term bitmap was originally coined in computer programming to refer to a map of bits. Historically when you saved an image on your home PC you might have saved it as a .bhp file, this is becoming less common with .jpeg the preferred image file format with the advent of digital cameras.
Bitmap files are housed in a device-independent bitmap (DIB) format. The term device independent means that the bitmap specifies pixel color in a form independent of the method used by a display to represent color. This enables Windows to show the bitmap on any type of display device - such as your monitor.
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