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Anonymous
PNGs have reversible compression. JPEGs have destructive compression.
That said, they have slightly different uses. PNGs are great for high-contrast celshaded cartoon drawings, because it doesn't destroy, its also good for saving reference pictures, it has an entire color channel for transparency, making it very usable for web graphics (except older and dumb browsers can't handle this).
JPEG throws away what you can't see. At high compression levels and on high-contrast pictures, this may become visible to the naked eye. On photographs, the destruction is hidden by the low general contrast.
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