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NTFS General Information
> Questions and Answers > Question
A: Compression on NTFS uses modified LZ77 algorithm. It is very fast but not always effective.
If works pretty well for the files/documents containing a number of repeating sequences of symbols. Example of such files types: text files, RTF, BMP, HTML files, etc...
For other file types, such as binaries, GIF, JPG, ZIP files, etc. this compression algorithm is not useful so that these files might not be compressed at all.
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