JPEG (Joint Photographic Experts Group) and GIF (Graphics Interchange Format) are two commonly used image formats, each with distinct features.

JPEG uses lossy compression by discarding some data to reduce file size which makes it suitable for photos and complex images. It supports millions of colors but lacks transparency.

On the other hand, GIF uses lossless compression, preserving all data, often resulting in larger files. With a limited color palette of 256 colors, GIF is good for simple graphics, supporting transparency for specific colors.