MP3 is an audio format that can compress and encode an audio file. It uses the lossy compression algorithm to contain audio data. The lossy compression helps to reduce the data significantly without losing audio quality. MP3s are created using different bit rates maintaining the original quality.
WAV is an audio file format developed by Microsoft and IBM, primarily used for storing high-quality uncompressed audio files. It offers excellent sound quality, making it ideal for professional audio editing and recording. While WAV files can be large in size, they preserve every detail of the original recording.