XZ Utils is a set of software tools used for data compression and decompression. It primarily utilizes the LZMA (Lempel-Ziv-Markov chain algorithm) compression method, which is known for producing high compression ratios while maintaining reasonable speed. The tools are commonly used to create and extract files in the XZ format, which is widely supported across various platforms. The package includes command-line utilities such as xz, unxz, and lzma, making it easy for users to manage compressed files. XZ Utils is often integrated into other software and is popular in environments where efficient storage and transmission of data are essential, such as in software distribution and backup solutions.