This is the format that is used in the OpenGL and Microsoft DirectX development environment. It is used to store bitmap images of user interface environments and textures. It allows you to store information in compressed and uncompressed forms. It is used for texturing game models and storing entire textural arrays to create games and 3D-software applications. DDS is used to develop the latest-generation video game consoles. It makes it possible to compress texture blocks 'on the fly', which increases performance when you run the application.
This format is used to store small personal icons. It is used in website development to create favicons that are displayed in the address bar of the web browser as well as in satellite TV for identifying broadcast channels. It is very similar in structure to a GIF format image.