This is a demonstration of color depth: as the color depth of an image decreases, the number of colors that comprise that image decreases, which can lead to problems with color accuracy and overall legibility.
In this demo you can see color depth variations from 8 bit to 1 bit. The sample images are GIF files, created using the Indexed Color function of Photoshop 3.0.1.
This is a demonstration of lossy compression using JPEG.
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