Lossless compression algorithms are techniques used to reduce the size of data files without losing any information. This means that when the data is decompressed, it returns to its original form exactly as it was before compression. Common examples of lossless compression formats include ZIP, PNG, and FLAC. These algorithms work by identifying and eliminating redundancy within the data. For instance, they may replace repeated sequences of characters with shorter representations. This process allows for efficient storage and transmission of data, making it particularly useful for text files, images, and audio where preserving quality is essential.