What is WEBP?
WebP is Google's image format for the web, and the rare one that does both jobs: lossy compression that beats JPEG at the same quality, lossless compression that beats PNG, and an alpha channel either way. Every current browser reads it; older software often still does not.
What is ICO?
ICO is the Windows icon container, and still what a browser fetches when it asks a site for /favicon.ico. One file can hold several sizes at once so the system can pick the right one; each dimension is stored in a single byte, which caps an icon at 256 pixels.