LZ or LZIP is an archive file that uses LZMA algorithm while compressing. LZ files can be created from several UNIX based tools like GZIP and BZIP2. It can compress multiple files and produce a multivolume archives. It can check the integrity of the file using a checksum.
7z is an archive format which was introduced 1999 with the 7-Zip open source file archiver. 7z is a container format which supports a variety of compression and encryption algorithms. Some examples are: bzip2, LZMA2 and LZMA.
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