Update README.md

Addresses #439

Author: vanruesc

README.md

@@ -49,7 +49,17 @@ requestAnimationFrame(function render() {
 
 ## Output Encoding
 
-Simply set `WebGLRenderer.outputEncoding` to the desired target color space and `postprocessing` will follow suit. Built-in passes automatically encode colors when they render to screen and internal render operations are always performed in linear color space.
+New applications should follow a [linear workflow](https://docs.unity3d.com/Manual/LinearRendering-LinearOrGammaWorkflow.html) for color management and postprocessing supports this automatically. Simply set `WebGLRenderer.outputEncoding` to `sRGBEncoding` and postprocessing will follow suit. Built-in passes automatically encode colors when they render to screen and internal render operations are always performed in the most appropriate color space.
+
+Postprocessing uses `UnsignedByteType` sRGB frame buffers to store intermediate results due to good hardware support and resource efficiency. This is a compromise because linear results normally require at least 12 bits per color channel to prevent [color degradation and banding](https://blog.demofox.org/2018/03/10/dont-convert-srgb-u8-to-linear-u8/). With low precision sRGB buffers, colors will be clamped to `[0.0, 1.0]` and information loss will shift to the darker spectrum which leads to noticable banding in dark scenes. Linear, high precision `HalfFloatType` buffers don't have these issues and are the preferred option for HDR-like workflows on desktop devices. You can enable high precision frame buffers like so:
+
+```ts
+import { HalfFloatType } from "three";
+
+const composer = new EffectComposer(renderer, {
+	frameBufferType: HalfFloatType
+});
+```
 
 ## Performance