The MPEG audio standard is a high-complexity, high-compression, and high audio quality algorithm. The Motion Pictures Experts Group (MPEG), a group that works on standards for both audio and video systems, saw the benefits of the digital representation of audio data. Its advantages include high immunity to noise (interference that destroys the integrity of signals), stability, reproducibility, and the efficient implementation of audio processing functions through a computer.

MPEG is a working group that was formed from the existing JPEG (Joint Photographic Experts Group) standard for bit reduction of still pictures. Its goal is to devise a suitable encoding scheme for transmitting moving pictures and sound over various broadcast links and recording them in standard digital storage media. Since moving pictures are often accompanied by sound, MPEG also defined a standard for encoding audio information. In 1992, a standard for audio and video encoding was devised known as MPEG-1.

MP3 stands for MPEG-1 Layer 3. Layers represent a family of coding algorithms. Layer 1 has the lowest complexity compared to the other layers. Layer 2 requires a more complex encoder and decoder and is directed more towards different applications. Thus, Layer 2 is more able than Layer 1 to remove the redundancy in the signal that takes up space. Layer 3 is again more complex and further reduces redundancy and relevance from the data. . The layers are backwards-compatible, which means that any software or hardware capable of decoding Layer 3 audio should also be able to decode Layers 1 and 2.