How does compression technology impact the data storage capabilities of a computer system?

Compression technology significantly enhances the data storage capabilities of a computer system by enabling more data to be stored within the same amount of existing storage capacity. This process involves encoding data in a way that reduces its size, allowing for more efficient use of available storage space. As a result, users can keep a larger volume of files without the immediate need to upgrade their storage solutions.

By compressing files before saving them, a computer can efficiently utilize its storage, which is particularly beneficial when dealing with large datasets, multimedia files, or any form of digital content that typically consumes a significant amount of space. While compression can improve data storage efficiency, it is important to note that it does not inherently affect the security of the data stored or eliminate the need for backups, nor does it decrease available storage.