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S3 Texture Compression (S3TC) (sometimes also called DXTn, DXTC, or BCn) is a group of related lossy texture compression algorithms originally developed by Iourcha et al. of S3 Graphics, Ltd. [1] [2] for use in their Savage 3D computer graphics accelerator.
Mipmapping is a standard technique used to save some of the filtering work needed during texture minification. [2] It is also highly beneficial for cache coherency - without it the memory access pattern during sampling from distant textures will exhibit extremely poor locality, adversely affecting performance even if no filtering is performed.