Compression is the process of reducing the size of a file or data set to save storage space or speed up data transfer. There are two main types of compression:

1. Lossless Compression: This method reduces file size without losing any data, allowing the original file to be perfectly reconstructed. Common formats include ZIP and PNG.
2. Lossy Compression: This technique reduces file size by removing some data, which may result in a loss of quality. It’s often used for audio, video, and images, with formats like MP3 and JPEG.

Compression is widely used in various applications, including file storage, web performance optimization, and media streaming, helping to enhance efficiency and speed.