I'm reading "Computer Science Made Simple" by V. Anton Spraul, and in the chapter about Graphics, he describes GIF files as follows:
A GIF file uses lossless compression to store an image with a maximum of 256 different colors.
The way I read this, it sounds like the book is saying it stores the image, but the stored image will have a maximum of 256 colors. If this interpretation is incorrect, and the author means that the GIF format only works with original images that have a max of 256 colors, then let me know since this makes my question redundant.
With that out of the way, let's assume the following scenario:
1) I have an arbitrary image with more than 256 colors.
2) I open the file in Photoshop or some other advanced image editor.
3) I save it as a GIF.
My question is, wouldn't this result in a loss of information, or artifacts in the new GIF? I'm capped at 256 colors when using the GIF format, and therefore would lose data, right?