The term data compression means lowering the number of bits of data which has to be saved or transmitted. You can do this with or without the loss of data, so what will be removed at the time of the compression will be either redundant data or unneeded one. When the data is uncompressed later on, in the first case the info and the quality will be the same, whereas in the second case the quality will be worse. There are various compression algorithms that are more efficient for different type of information. Compressing and uncompressing data normally takes a lot of processing time, which means that the server executing the action should have adequate resources in order to be able to process the data quick enough. A simple example how information can be compressed is to store just how many sequential positions should have 1 and how many should have 0 in the binary code instead of storing the particular 1s and 0s.
