There is a common question in which has been directed to a lot of photographers that what is the difference between JPEG and RAW. There are differences between JPEG and RAW based on their sizes, quality, firmware DCT processing, etc. A JPEG is a file that has been compressed by a camera and does not contain full information recorded by a camera sensor during exposure when you are using JPEG file, all the information in the brightest and darkest areas have been lost. There is a lot of advantage for using a JPEG format which includes, faster backups, choice of compression, compatibility, and also small footprint.
RAW is a file that contains all the information recorded in your camera sensor during exposure. RAW files are not processor or compressed and also contain basically three parts, which are the actual raw data, sensor, and a camera processed full-size JPEG preview. The advantages of using raw format include far more shades of color; they are lossless, and better sharpening potential.