History and Applications
In the early days of PCs, it was common for video adapters to support only 2, 4, 16, or (eventually) 256 colors due to video memory limitations; they preferred to dedicate the video memory to having more pixels (higher resolution) rather than more colors. Color quantization helped to justify this tradeoff by making it possible to display many high color images in 16- and 256-color modes with limited visual degradation. The Windows operating system and many other operating systems automatically perform quantization and dithering when viewing high color images in a 256 color video mode, which was important when video devices limited to 256 color modes were dominant. Modern computers can now display millions of colors at once, far more than can be distinguished by the human eye, limiting this application primarily to mobile devices and legacy hardware.
Nowadays, color quantization is mainly used in GIF and PNG images. GIF, for a long time the most popular lossless and animated bitmap format on the World Wide Web, only supports up to 256 colors, necessitating quantization for many images. Some early web browsers constrained images to use a specific palette known as the web colors, leading to severe degradation in quality compared to optimized palettes. PNG images support 24-bit color, but can often be made much smaller in filesize without much visual degradation by application of color quantization, since PNG files use fewer bits per pixel for palettized images.
The infinite number of colors available through the lens of a camera is impossible to display on a computer screen; thus converting any photograph to a digital representation necessarily involves some quantization. In practice, 24-bit color is sufficiently rich to represent almost all colors perceivable by humans with sufficiently small error as to be visually identical (if presented faithfully).
With the few colors available on early computers, different quantization algorithms produced very different-looking output images. As a result, a lot of time was spent on writing sophisticated algorithms to be more lifelike.
Read more about this topic: Color Quantization
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