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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.

ICO is a file of this format usually contains a small image icons of different resolutions (16x16, 32x32, 64x64 pixels) and various color depths (16 colors, 32, 64, 128, 256, 16-bit, and so on). Used to display files and folders in the graphical user interface (GUI) operating systems. This format can be opened with the help of the program ACDSee.