TBZ2 is an archive file associated with UNIX. TBZ2 uses TAR and BZIP2 Compression. It uses TAR to archive the files first, then it uses BZIP2 algorithm to compress the TAR files. It decompresses similarly. First BZIP2 un-compresses and then TAR archive extracts it.
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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