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PNG is a raster image format that employs a lossless compression technique called Deflate. It was developed as a free image alternative to the GIF format. PNG supports three different types of raster graphics: grayscale images, indexed-color images, and full-color images. PNG is able to discriminate visual information in a compressed representation while keeping its image quality intact; this is why it is so popular across the web and in design applications.
Q: What is TGA?
A: TGA is a raster format supporting 24/32-bit color and alpha.
Q: Why PNG?
A: PNG provides lossless compression and transparency support.