Data compression is the reduction of the number of bits that have to be stored or transmitted and this process is very important in the internet hosting field as info recorded on hard disk drives is typically compressed in order to take less space. You will find different algorithms for compressing information and they have different efficiency based upon the content. Many of them remove only the redundant bits, so no data will be lost, while others remove unneeded bits, which results in worse quality when your data is uncompressed. The process needs plenty of processing time, which means that a web hosting server needs to be powerful enough to be able to compress and uncompress data in real time. An example how binary code may be compressed is by "remembering" that there're five consecutive 1s, for example, as an alternative to storing all five 1s.