The format is designed for Kodak cameras to store uncompressed RAW images in their original form without auto color and white balance correction. The file has a TIFF-structure that allows you to edit the color temperature and exposure of the finished image without losing information and quality, which is something that cannot be done with JPEG format images.
This format is used to compress TIFF images when sending them via fax machines. This format helps reduce the data transmission time. Group 3 eliminates redundant data during compression in order to reduce file size. The standard 10:1 compression ratio may be increased to the user's preferences, but it can lead to a significant loss of image quality.