A GIF or Graphical Interchange Format is a type of highly compressed image. Owned by Unisys, GIF uses the LZW compression algorithm that does not degrade the image quality. For each image GIF typically allow up to 8 bits per pixel and up to 256 colors are allowed across the image. In contrast to a JPEG image, which can display up to 16 million colors and fairly touches the limits of the human eye.
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