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.
RAR is an archive file format that can compress data files similar to ZIP. It can be created with WinRAR software. But it is not an open source archive file. Using Huffman encoding RAR file uses lossless file compression technique to compress large amount of files.
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