Data compression is a common requirement for most of the computerized applications. There are number of data compression algorithms, which are dedicated to compress different data formats. Even for a single data type there are number of different compression algorithms, which use different approaches. This paper examines lossless data compression algorithms and compares their performance. The article is concluded by stating which algorithm performs well for Image data. This paper addresses the area of image compression as it is applicable to various fields of image processing. It also includes various benefits of using image compression techniques. The decryption techniques are used for the best possible way of reconstruction of Image.