What ARE DDS files?

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Neochrome
 #1
Just out of curiousity, i've been working with PNG JPG and BMP files for ever when writing games
the Obvious question i actually dont know is

What are DDS textures, whats their advantages and what should i use them for?
i've also noted that DDS files can be loaded into BSP files.. but i dont know what this difference are. :-(