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thanks 4 ur reply.ya this is lossless image compression but what is PREPROCESSING block.
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preprocessing might be any processing taken before the actually process we are focusing on. The picture you attached probably want to stress on the compression part so the other processing which is not relevent to compression of the image is not told here (and put in a block called preprocessing).
For example if the input is a NTSC video. It need to go for a few processing b4 compression take place. Maybe chroma resampling (YCbCr 4:2:2 -> YCbCr 4:4:4), color space conversion (YCbCr 4:4:4 to RGB), Scaling (720x480pixels -> 640x480pixels) and so on.