This online tool can remove line breaks from web code/scripts or text. By doing this it also gets rid of unused whitespace while still maintaining correctly working web code or readable text. To be sure: it doesn't remove the necessary whitespace between words or web code, your code will still work the same and your text will still be readable.
By removing all the line breaks from your web documents you get rid of unused and unneeded whitespace in your code. This will minify and compress your code which will in return decrease the byte size of your web documents. Because the size of your web documents will be smaller your visitors can download your web documents faster.
It can be a major factor for very large documents with a lot of breaks and paragraphs. Applying this tool to most standard web documents will usually only save you around 1kb-3kb in size maximum though. It's not a large factor but it still helps. Tweaking your web pages for greater speed consists of many small little changes and this can be one of them. There are much more important factors when it comes to page speed though.
Yes. This tool does not affect the functioning of your code and scripts. The only thing it does is remove unnecessary line breaks (and thereby whitespace).
Much less. Because all the line breaks are removed there are are no breaks to sort and divide your web code. This will make your code less readable.
It depends. If it's text within a web document and you use web coding(like the HTML BR tag) to separate paragraphs your text will be fine. But if you use this tool simply to remove line breaks from a plain text document all your paragraphs will be removed. You will get one big block of text without paragraphs.
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