Technical Guide · Image Optimization

Lossless vs Lossy Compression: How Algorithms Work

Explore the mathematics and perceptual heuristics behind image compression codecs, from discrete cosine transforms to entropy encoding.

Written by WebpForge Tech Staff · 9 minute read · Updated August 2026

How lossy compression works

Lossy compression algorithms (such as JPEG and lossy WebP) exploit human visual perception limitations (psychovisual redundancy). The human eye is far more sensitive to variations in luminance (brightness) than chrominance (color).

Codecs convert RGB pixel data into YCbCr color spaces, downsample color channels (4:2:0 subsampling), and perform Discrete Cosine Transforms (DCT) to discard high-frequency visual details that human eyes cannot distinguish.

How lossless compression preserves every pixel

Lossless compression algorithms (such as PNG and lossless WebP) do not discard a single bit of visual information. Instead, they use spatial prediction filters (predicting neighbor pixel colors) and entropy coding algorithms (DEFLATE / LZ77 / Huffman encoding) to represent identical data in fewer bytes.

  • Use lossy compression for photographs, hero backgrounds, and complex textures.
  • Use lossless compression for logos, typography, screenshots, vector graphics, and transparency.
  • Avoid re-saving lossy files repeatedly to prevent generational compression artifacts.