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DNG (Digital Negative) is an open-source raw image file format developed by Adobe, aimed at providing a universal and more standardized option for storing raw image data from digital cameras. This format enables extensive post-processing flexibility, allowing photographers to adjust exposure, color balance, and other settings while preserving image quality. DNG files also tend to be smaller in size compared to other raw formats, and they are widely supported across various software applications, making them a popular choice for photographers looking for both quality and compatibility.

PSD stands for Photoshop Document, and it is the default file format used by Adobe Photoshop, a popular image editing software. PSD files support multiple layers, allowing for rich image composition and editing. They can store an image's individual layers, text, masks, transparency, clipping paths, and other settings, which are all editable within Photoshop. This format is widely used by graphic designers, photographers, and artists for creating and editing complex images and digital art.