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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.

JPG extension was assigned to the image files. Many photos and web graphics are saved in JPG. In order to compress many bitmaps are saved in .jpg, that makes it easier to transfer and download these files on the Internet. JPG format based on the 24-bit color palette, the higher the level of compression applied to create the file JPG, the greater the decompression effect on image quality.