7Z 7-Zip Archive Format
7Z is the native archive format of 7-Zip, an open container that can hold many files and directories under a single header. Its defining trait is that the container and the compression method are separate concerns: a 7z file can carry LZMA2, LZMA, bzip2, or PPMd data, and LZMA2 is what it reaches for by default.
LZMA2 works from an LZ-style sliding dictionary backed by a range coder, and that dictionary can be made very large. Feeding the matcher a bigger window is precisely why 7z tends to beat DEFLATE-based formats on sizeable inputs: repeated material far apart in the input still gets matched and collapsed.
The cost is time and memory. A large dictionary has to be held in RAM while compressing and decompressing, so 7z favours situations where the archive is written once and read occasionally, such as distributing a build or shrinking an archive for long-term storage.[1][2][3]