WebP is a new image format created by Google as a replacement for JPEG, PNG, and GIF. It offers both lossy and lossless compression as well as transparency and animation support. WebP images are generally 25-34% smaller than JPEGs and 26% smaller than PNGs at an equivalent quality level. The document discusses what WebP is, the benefits of using it, how to convert images to the WebP format using command line tools, and how to display WebP images in Android Studio and Xcode.