However, for uncompressed video at the very least (of which there are numerous examples), there's greater flexibility. The video is encoded as 16-color bitmap frames (single palette per frame -ideally each frame would use its own optimized 16-color palette), but rather than ordered dithering, a utility could be designed to convert images using things like Floyd-Seinberg (error diffusion) dithering, which still looks grainy by design, but looks much nicer as I already mentioned in my previous post.