The Lempel-Ziv-Welch compression algorithm was developed by Terry Welch in 1984, as a modification of the LZ78 compressor. It is a lossless technique which can be applied to almost any type of data, but is most commonly used for image compression. LZW compression is effective on images with colour depths from 1-bit (monochrome) to 24-bit (True Colour). LZW compression is encountered in a range of common graphics file formats, including TIFF and GIF.