Lossless
ORIGINAL DATA FULLY RECOVERABLE
Compressed data can be decompressed to get the exact original. No data is lost or altered. Required when every bit matters.
Examples: RLE, Huffman coding, ZIP, PNG, FLAC
Used for: text files, executables, medical images, spreadsheets
Lossy
SOME DATA PERMANENTLY DISCARDED
Compression removes data the human eye or ear typically cannot perceive. Cannot recover original once compressed. Achieves much higher compression ratios.
Examples: JPEG, MP3, AAC, H.264 video
Used for: photos, music, video streaming