LZMA2 is a data compression algorithm that builds on the original LZMA (Lempel-Ziv-Markov chain algorithm). It is designed to provide high compression ratios while maintaining fast decompression speeds. This makes it suitable for various applications, including file archiving and software distribution. One of the key features of LZMA2 is its ability to handle multi-threading, allowing it to utilize multiple CPU cores for faster compression. This enhances performance, especially when dealing with large files or datasets. Overall, LZMA2 is widely used in formats like 7z and xz for efficient data storage.