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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.

The RAW image file format is a generic term for a variety of image formats used by different digital camera manufacturers. RAW files store unprocessed data from the camera's sensor, providing photographers with the ability to manipulate settings like exposure, white balance, and sharpness during post-processing, which can result in higher image quality. Unlike JPEG and other compressed formats, RAW files retain a much broader range of color and luminance values, offering more flexibility for editing but also resulting in larger file sizes.