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PNG files are often large. JPEG XL (JXL) usually stores the same image far more compactly while keeping transparency - it even supports lossless storage. Important: JXL is still barely opened by any browser or program, so it is mainly useful for archiving or for JXL-capable software.
The PNG is decoded locally and encoded as JXL with a self-hosted codec; the alpha channel is preserved. The quality slider controls the file size. Nothing is uploaded.
Because PNG files quickly reach several megabytes for photos and detailed graphics, JPEG XL is a promising way to store the same content much more compactly - including transparency and high colour depth. This mainly makes sense for a long-term archive or a pipeline where every tool handles JXL. As long as your browser or image viewer does not display the format, however, the PNG stays the universally readable variant; so keep the original until JXL is supported everywhere you work.
How strongly the slider intervenes is up to you: a high value keeps edges and fine structures almost untouched, a low one shrinks the file the most. For an important original, feel free to try two settings and compare before you commit. That way you find the point where the saving is large and the visible difference small.
Limitations: The quality slider works lossily. The "Lossless" option for the JXL target is nearly, but not absolutely, pixel-exact: on a very small fraction of pixels (well under 1%) a minimal rounding deviation of +/-1-2 out of 255 can occur, invisible to the eye and irrelevant for virtually every use. For guaranteed pixel-exact lossless graphics, PNG remains the safer choice. Most browsers and programs do not open JXL yet - as PNG the image stays readable everywhere. Embedded metadata such as capture date, camera and GPS location does not survive the re-encode - only the image orientation is baked into the pixels beforehand.
FAQ
Is transparency preserved?
Yes, JXL supports transparency and the alpha channel is kept.
Can I open JXL everywhere?
No. JXL is still barely supported by browsers or programs; as PNG, by contrast, the image works everywhere.