Storage and transmission of image information define the requirements for memory size and channel bandwidth.
Image coding is mostly necessary for the purpose of data compression by reduction of resolution in time or space focussing on those information components that are absolutely necessary for solving the image processing task.
Lossless and lossy methods of various kinds are used but standards as JPEG and MPEG are preferred, although also fractal or neural vector quantization methods can be applied.
Depending on the time requirements for image data processing hardware and software solutions are possible as also combinations of both.
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