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The Portable Network Graphics (PNG) format was designed to replace the older and simpler GIF format and, to some extent, the much more complex TIFF format.
For image editing PNG provides a useful format for the storage of intermediate stages of editing. PNG's compression is fully lossless–and since it supports up to 48-bit truecolor or 16-bit grayscale–saving, restoring and re-saving an image will not degrade its quality. Unlike TIFF, the PNG specification leaves no room for implementors to pick and choose what features they'll support; the result is that a PNG image saved in one application is readable in any other PNG-supporting application.
For the Web, PNG really has three main advantages over GIF: variable transparency, cross-platform control of image brightness, and a method of progressive display. PNG also compresses better than GIF in almost every case, but the difference is generally only around 5% to 25%.