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In information theory, data compression, source coding, or bit-rate reduction is the process of encoding information using fewer bits than the original representation. Any particular compression is either lossy or lossless. Lossless compression reduces bits by identifying and eliminating statistical redundancy.

Data compression is the process of modifying, encoding or converting the bits structure of data in such a way that it consumes less space on disk. It enables reducing the storage size of one or more data instances or elements. Data compression is also known as source coding or bit-rate reduction.

Data compression is the process of modifying, encoding or converting the bits structure of data in such a way that it consumes less space on disk. Advertisements. It enables reducing the storage size of one or more data instances or elements. Data compression is also known as source coding or bit-rate reduction.

The task of compression consists of two components, an encoding algorithm that takes a message and generates a “compressed” representation (hopefully with fewer bits), and a decoding algorithm that reconstructs the original message or some approx- imation of it from the compressed representation.

Compression is the process of encoding data more efficiently to achieve a reduction in file size. One type of compression available is referred to as lossless compression. This means the compressed file will be restored exactly to its original state with no loss of data during the decompression process.

Data compression can dramatically decrease the amount of storage a file takes up. For example, in a 2:1 compression ratio, a 20 megabyte (MB) file takes up 10 MB of space. As a result of compression, administrators spend less money and less time on storage.

There are two main types of compression: lossy and lossless.

The data encryption at the transmission end as well as the decryption at the receiver end is managed by the presentation layer. In order to reduce the number of bits to be transmitted, the presentation layer performs the data compression. It increases efficiency in case of multimedia files such as audio, video etc.