This format is used as the color palette format for a variety of operating system image editors. It is used to store font templates in text and graphic editors. It allows you to change color intensity and transparency levels.
This format is used to store background images in uncompressed form in the X Windows System user interface for remote server maintenance. It stores a 'dump' or screenshot of the window or background of the client program. It may include different colors depending on the capabilities of the graphics card that is used to create the XWD file.