XZ is data compressor that uses LZMA2 compression algorithm. It is a lossless data compression technique. It can contain multiple compressed. Using the LZMA2 algorithm is compresses the data file in a high ratio. It is mainly used in Linux package distributions.
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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