TXTZ is a text archive file format creates a zip archive with text. It can also add images to the archive. It works with Calibre eBook software only till now. It supports Calibre because the TXTZ makes the eBook into one file. It supports Meta data using metadata.opf file.
TXT is a document file format that supports plain text. Almost all the applications recognize and support TXT file because it does not contain any text formatting. Also all the Operating Systems and devices support this file as it contains the ASCII characters only.
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