Lossy compression is a method of reducing the size of digital files by permanently eliminating some data. This technique is commonly used for audio, video, and image files, where a perfect reproduction is not necessary. For example, JPEG images and MP3 audio files use lossy compression to decrease file size while maintaining acceptable quality for most users. The main advantage of lossy compression is that it significantly reduces storage space and bandwidth usage, making it easier to share and stream content. However, the trade-off is that some detail is lost, which may be noticeable in high-quality applications or for users with keen senses.