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What does the predictor switch do while compressing geoTIFFs in GDAL

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I am merging several geoTIFF into one and am using the -co COMPRESS=DEFLATE create option for geoTIFFs. An additional switch is the predictor switch.

What does it do?
The GDAL website is not clear on this. It mentions horizontal differencing and floating point prediction. But I have no idea what is meant by these terms.
Thanks for your answer.


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