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GIF is popular image format, used for small animations and low-resolution movie clips. Lets take a closer look at it. GIF is a lossless format for bitmap images, where every pixel of the image is represented by its color. To reduce the file size of a GIF image, the maximum number of colors allowed is 256. The colors used in a particular GIF image are stored in the color palette as a pair of their index and their RGB value. The palette can contain transparent colors, which allows transparency in the GIF image. Having only 256 colors, choosing the right ones for color palette is crucial since we want the new image to be as visually similar as possible to the original image. This is achieved by combining quantization and dithering. Quantization reduces the number of distinct colors used in an image by putting similar ones in to the blocks and selecting their average color. Dithering applies noise to randomize the quantization outuput in order to prevent color banding. Next step in GIF c