This document compares lossy and lossless image compression using various algorithms. It discusses the need for image compression to reduce file sizes for storage and transmission. Lossy compression provides higher compression ratios but some loss of information, while lossless compression retains all information without loss. The document proposes comparing algorithms like Fractal image compression and LZW, analyzing parameters like SNR, PSNR, and MSE for formats like BMP, TIFF, PNG and JPEG. It provides details on how the LZW and Fractal compression algorithms work.