One benefit of using the 7z file extension is that it can split larger files into several smaller parts. But while the 7z file format boasts a slightly better compression than a ZIP file, it does not feature the same compatibility. To truly understand what the 7z file format is, you could compare it in many ways to a ZIP file. It’s similar to a ZIP file but uses a different lossless compression method called LZMA to reduce file size while preserving quality.
The 7z file extension is a compressed archive format created with 7-zip open-source software.
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