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Compression is a common practice in computer usage, impacting tasks like loading files from a CD, downloading files online, and streaming content on platforms like YouTube. This process helps save bandwidth and storage space, but how exactly does it work? There are two types of compression to understand: lossless and lossy. Lossless maintains all original data, reorganizing it for efficiency, while lossy sacrifices some data to create smaller files. Both types require decompression on the receiving end to restore the original content.