A codec is a software or hardware tool that compresses and decompresses digital media files, such as audio and video. The term "codec" is a combination of "coder" and "decoder," reflecting its dual function. Codecs enable efficient storage and transmission of media by reducing file sizes while maintaining quality, making them essential for streaming services and video conferencing. There are many types of codecs, each designed for specific purposes. For example, the MP3 codec is widely used for audio compression, while H.264 is popular for video. Choosing the right codec can significantly impact the performance and quality of media playback.