Dithering techniques are methods used in digital imaging to create the illusion of color depth in images with limited color palettes. By strategically placing pixels of different colors next to each other, dithering helps to smooth out color transitions and reduce the appearance of banding. This is particularly useful in graphics where only a few colors are available, such as in GIF images. Common dithering algorithms include Floyd-Steinberg and Ordered Dithering. These techniques vary in how they distribute the error from quantization across neighboring pixels, affecting the final appearance of the image. Dithering is widely used in various applications, including video games and digital art, to enhance visual quality.