Your camera has a sensor made up of thousands of little light detectors. A raw image stores the reading off of all of them.
Any other format takes the raw image and removes information considered redundant. For instance, if you want to display an image on a 1024 X 768 display, there is not much point in having 4096×1920 individual points – so the format averages them.
Raw – advantage is no lost data. Disadvantage, needlessly huge file.
Jpg – advantage, no discernable difference in image, but much smaller file size. Disadvantage = you lost some data. Maybe you need it for some post processing purpose – printing in a larger format, for example, or applying a complex filter to alter the image.
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