Compressed images are digital pictures that have been reduced in file size to save storage space and improve loading times. This process involves removing some data from the image, which can be done using various algorithms. Common formats for compressed images include JPEG, PNG, and GIF, each with its own method of compression. The main benefit of compressed images is that they can be shared and displayed more quickly, especially on websites and mobile devices. However, excessive compression can lead to a loss of quality, making the image appear blurry or pixelated. Balancing size and quality is essential for optimal results.