Data compression is the reduction of the number of bits that need to be stored or transmitted and the process is quite important in the internet hosting field as info recorded on hard drives is generally compressed so as to take less space. There're many different algorithms for compressing data and they offer different effectiveness based upon the content. A lot of them remove just the redundant bits, so no data can be lost, while others delete unneeded bits, which results in worse quality once your data is uncompressed. This method uses a lot of processing time, which means that an internet hosting server has to be powerful enough to be able to compress and uncompress data instantly. An example how binary code could be compressed is by "remembering" that there are five consecutive 1s, for example, as an alternative to storing all five 1s.