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This is a format that applies an 8-bit encoding to images for the purpose of compression and transportation. The format was originally developed for the Utah Raster Toolkit software package for managing bitmaps. The compression algorithm provides a replacement for repeating strings of bytes into pairs, which significantly reduces the file size.

This format is used to compress TIFF images when sending them via fax machines. This format helps reduce the data transmission time. Group 3 eliminates redundant data during compression in order to reduce file size. The standard 10:1 compression ratio may be increased to the user's preferences, but it can lead to a significant loss of image quality.