What is the Portable Network Graphics format known for?

The Portable Network Graphics (PNG) format is primarily known for offering lossless data compression, which is indeed an improvement on the older Graphics Interchange Format (GIF). Lossless compression means that when an image is compressed, none of the original data is lost, allowing for the image to be restored to its exact original quality when decompressed. This capability is particularly significant in scenarios where image quality is crucial, such as in professional graphics work and web design.

Unlike GIF, which can only handle a limited color palette (256 colors), PNG supports a wider range of colors and also includes features such as transparency. This makes PNG a versatile choice for a variety of applications, especially on the web, where clear and high-quality images are important.

Thus, the emphasis on lossless data compression in the PNG format is a key reason for its adoption and use, distinguishing it from other formats like JPEG, which uses lossy compression.