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GIF (Graphics Interchange Format) is a widely used image file format that supports both animated and static images. It is particularly noted for its ability to display images with transparent backgrounds and is commonly used for web graphics, memes, and simple animations. However, GIF is limited to a 256-color palette, which makes it less suitable for full-color photographs and detailed artwork.

JPG (or JPEG) is one of the most widely used image file formats, favored for its efficient lossy compression algorithm that significantly reduces file size while maintaining a high image quality. It is commonly used for photographs and web graphics; however, the lossy nature of its compression means that some image quality is sacrificed, and this loss can be exacerbated with repeated editing and saving. JPG files support 24-bit color, allowing for a broad spectrum of colors, but they do not support transparent backgrounds.