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pixilation

n. ~ 1. The representation of an image through the use of discrete rather than continuous quantities. - 2. The distortion of an image resulting from discrete values failing to adequately represent a continuous value.

Notes: 

A halftone is an analog equivalent to pixilation1. A continuous-tone image is broken up into an array of light or dark elements; variation in the distribution of elements approximates different tones. A bitmap breaks up an image into pixels arranged in a grid. A line running diagonally across a grid made of squares will have a staircase pattern on the edge. The higher the image resolution, the less noticeable the effect. - Coarse pixilation2 is sometimes used intentionally to obscure portions of an image, such as a face on television news.