The GIF (Graphic Interchange Format) is limited to 8-bit (256 or fewer colors) color
palettes. The GIF format uses a basic form of compression known as LZW or Lemple Zev
Welch. This "lossless" compression method preserves all the visual data in a picture. No
information is discarded or altered during the compression process.
Most web browsers support the GIF format for inlined images. The use of the GIF format
for diagrammatic images produces the best results. However, it is not very good at
compressing complex pictures with lots of grainy textures such as photographs. GIF also
supports transparency. This feature allows the ability to create silhouettes against the
background of a web page.
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