7Z is a file compression format created by the software 7-Zip. It is known for its high compression ratio, which allows users to reduce the size of files and folders significantly. This makes it easier to store and share large amounts of data efficiently. The 7Z format supports various compression algorithms, including LZMA and LZMA2, which enhance its performance. Additionally, it can handle multiple file types and offers features like encryption and multi-volume archives, making it a versatile choice for users looking to manage their files effectively.