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.
JPG extension was assigned to the image files. Many photos and web graphics are saved in JPG. In order to compress many bitmaps are saved in .jpg, that makes it easier to transfer and download these files on the Internet. JPG format based on the 24-bit color palette, the higher the level of compression applied to create the file JPG, the greater the decompression effect on image quality.