What is LZW?
LZW is a cross-platform compression method, predominantly used for image formats like TIFF (although it can be used for text files, etc.). It is a "lossless" compression method, which means that no information is lost. Compare that to the JPEG format, for example, which is a "lossy" compression method that degrades every time you resave a file. If a JPEG file degrades enough, you will begin to notice artifacts, like blemishes or digital hiccups (see example below).
Saving high resolution TIFFs with LZW compression is a good way to save disk space. On slower machines, you may notice applications like Photoshop take longer to open TIFFs with LZW compression, because they have to decompress the file before they can display them.
Some printers and RIPs used to have problems printing images with LZW compression years ago. This is no longer an issue with modern RIPs, but don't be surprised if a printer who uses older technology requests TIFFs without LZW compression.
The letters LZW stand for the three creators of the compression method: Abraham Lempel, Jacob Ziv, and Terry Welch.
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Reference:
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