Minification reduces the size of script and CSS files by removing blank spaces , comments etc. For example below is a simple javascript code with comments.
// This is test var x = 0; x = x + 1; x = x * 2;
After implementing minification the JavaScript code looks like below. You can see how whitespaces and comments are removed to minimize file size, thus increasing performance.
var x=0;x=x+1;x=x*2;