Data compression is the decrease of the number of bits which should be stored or transmitted and the process is really important in the web hosting field due to the fact that info filed on hard drives is often compressed so as to take less space. You'll find many different algorithms for compressing information and they provide different efficiency depending on the content. Some of them remove only the redundant bits, so that no data can be lost, while others delete unneeded bits, which results in worse quality when the particular data is uncompressed. This process uses a lot of processing time, so an internet hosting server needs to be powerful enough so as to be able to compress and uncompress data instantly. An example how binary code could be compressed is by "remembering" that there're five sequential 1s, for example, rather than storing all five 1s.