https://www.cablematters.com/blog/DisplayPort/what-is-displa...
There's also a term for audio, but I forgot the exact terminology.
Things like this is applying lossy compression carefully with lab test on real humans to claim that under an A/B test an average human would not discern the difference.
But it still doesn't mean it should not be taken with a grain of salt. In any case, it is objectively inferior (and subjectively might not matters.) On top of my head one thing I'd question is generation loss (but if I am serious in the market of this kind of display I should study more carefully what their claim really is.)
But this is enough a technical detail for anyone to say "they only achieve XxY resolution at Z FPS with DSC" because the theoretical bandwidth isn't there and make do with lossy compression.