The process or operation of reducing the size of a computer file is called data compression. Computers determine ways to shorten long sequences of data through an algorithm or set of rules for performing an operation. Later, it reassembles them in a recognizable form when the data is retrieved. The result is a file that contains fewer bits or units of information compared to the original file.
There are two types of data compression: lossless and lossy. Lossless compression preserves all the original data, but the algorithm reduces the file size to preserve the information needed to expand the file to its original size when decompressed. Lossy compression reduces the file size even further, but with sacrifices in detail.
Data compression is important because it minimizes the space that files take up on the hard disk. It also reduces the time it takes to transfer or download these files. This reduction in storage space and time results in significant cost savings for any company.
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