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XCF (eXperimental Computing Facility) is the native image format of the GIMP (GNU Image Manipulation Program) software. It is a layered image format, allowing users to save their progress, layers, channels, paths, and text layers for further editing. While XCF retains all editing data and layers, it's not typically used for web or print because many other programs do not recognize it. Instead, it's primarily used to save intermediate stages of digital art or photo editing within GIMP.

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.