wordpress knowledgebase - The MEDIA SETTINGS sub-panel is the place you define alternatives for displaying various media, mainly images, that are available from your MEDIA PANEL in the upper NAVIGATION bar.
WordPress has built-in image reduction. It automatically creates as much as three images of numerous sizes, (thumbnail, medium and enormous) based on the dimensions within this sub-panel and WordPress also saves the initial image, so you will have a total of four image sizes saved for each image you upload.
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