CR2 file contain uncompressed and untouched raw image data from Canon cameras. These raw files are also sometimes called digital negatives. The purpose of raw files is to get maximum information from the sensor of the camera to give possibilites to adjust the image later (e.g. white balancing and color grading).
JPG, also known as JPEG, is a file format that can contain image with 10:1 to 20:1 lossy image compression technique. With the compression technique it can reduce the image size without losing the image quality. So it is widely used in web publishing to reduce the image size maintaining the image quality.
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