Some of the detail is taken out in lossy compression in order to make the file smaller. The idea is to remove data that matters the least. This means that you can´t recover the original file when usin this type of compression.
An MP3 music file is only about tenth the size of the original CD track. Data is removed that´s considered beyond most people´s perpection, but some people say they cant tell the difference.
JPEG images are lossy. You can control how much detail to lose.
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Very good blog :D
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