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The TIF or Tagged Image File Format is used for storing multiple images in one file, supporting 8 and 16 bits per channel for up to 48 bit images with varying transparency. It is often used as a larger container for multiple images before transport, allowing for easy editing of photos at a later time. TIF format can be left uncompressed to maintain image quality or use lossless compression algorithms to extend functionality. Its key advantages include support for varying transparency, uncompressed storage, and lossless compression options.