What makes FFV1 lossless, compared to H.264?

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What in the coding process makes FFV1 a lossless codec when comparing to a lossy codec like H.264? Is the encoding process for FFV1 similar? (Prediction, DCT, Chroma subsampling etc) – if it is similar, how come that its then lossless?

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The encoding process is similar. The difference being in the parameters used, prediction algorithm, exact processes, etc which are things they have tested to be better for lossless video compression. But whan FFV1 does that H.264 does not do is it encodes the difference between the predicted image and the actual image. The idea being that these differences is very low so this information compresses easily.