

The CR2 takes over from Canon's previous format - CRW and is used by the Canon 350D, 1D, G9 and 20D models. RAW files are the best quality to size ratio that a photograph can be stored in, primarily because each colour is recorded in either 12 or 14 bits and a lossless compression is used.
JPG typically achieves 10:1 compression with little perceptible loss in image quality. The degree of compression can be adjusted, allowing a selectable tradeoff between storage size and image quality. JPG is a commonly used method of lossy compression for digital images, particularly for those images produced by digital photography. You can choose to store your pictures in RAW format which gives you the benefit of being able to do a lot of post processing on the file, if you tried to do this with JPEG, this would be difficult and would likely result in a quality loss. This does not contain a ready to view picture like a JPG or PNG file, it is used to store information directly coming from the sensor. The Canon RAW version 2 (cr2) format is a RAW format created by Canon for storing digital images.

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