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JPEG is a "lossy" file format, which means the files can be much smaller than "lossless" formats such as TIFF. However, the smaller file size is at the expense of image quality.
Even though this may be imperceptible if you just save the image once, the quality losses will be multiplied each time you load and save the image. This means you should use TIFF files if you intend to make multiple changes to an image in different sessions or using different programs.
