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Dithering is the intentional use of noise (random sounds) to reduce the error of compression.
Figure 3. Original image using the web-safe color palette with Floyd–Steinberg dithering. Note that even though the same palette is used, the application of dithering gives a better representation of the original.
Figure 4. Here, the original has been reduced to a 256-color optimized palette with Floyd–Steinberg dithering applied. The use of an optimized palette, rather than a fixed palette, allows the result to better represent the colors in the original image.