How does GIF compression work?
GIF compression uses LZW (Lempel-Ziv-Welch) lossless compression on each frame's color data. Additional optimization techniques: color palette reduction (using fewer than the maximum 256 colors reduces data needed), interframe optimization (only storing the pixels that change between frames rather than complete frames), dithering reduction, and removing metadata. GIF compressors apply these optimizations to reduce file size without changing the visual content - up to 50–70% reduction is possible on typical GIFs.