In computing, indexed color is a technique to manage digital images' colors in a limited fashion, in order to save computer memory and file storage, while speeding up display refresh and file transfers. It is a form of vector quantization compression.
When an image is encoded in this way, color information is not directly carried by the image pixel data, but is stored in a separate piece of data called a palette: an array of color elements, in which every element, a color, is indexed by its position within the array. The image pixels do not contain the full specification of its color, but only its index in the palette. This technique is sometimes referred as pseudocolor or indirect color, as colors are addressed indirectly.
Perhaps the first device that supported palette colors was a random-access frame buffer, described in 1975 by Kajiya, Sutherland and Cheadle. This supported a palette of 256 36-bit RGB colors.
Read more about Indexed Color: Palette Size, Colors and Palettes, Pixel Bits Arrangements, Advantages, Disadvantages, Image File Formats Supporting Indexed Color
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