Quote:
Originally Posted by voom
PNG just uses better algorithms, but you can not compress without discarding some kind of information. Anyway I meant that PNG-24 is more like jpg in that it uses true color and is fit best for complex images like photos. PNG-24 won't let you compress it further when loss of information becomes visible to the human eye.
But then, my "expertise" on this comes from the eye of a designer, not a programmer 
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http://en.wikipedia.org/wiki/Portable_Network_Graphics
PNG is lossless. Lossless compression works by removing redundant information from a source. Lossy compression works by removing redundant as well as some necessary information. The trick for lossy compression is ensuring the compression only removes the less-than-essential information.