The GIF image format, "Graphics Interchange Format", is an old image format designed in the era of graphics cards handling 16-256 colors. It utilizes very simplistic compression, and has very limited support for transparency. The modern alternative to the GIF format is the PNG format, which while also being (near-)lossless, handles true color display and a separate "alpha" (transparency) channel that allows for smooth edges (anti-aliasing) regardless of background color.