Lzip is a lossless file compressor based on the LZMA (Lempel-Ziv-Markov chain-Algorithm) algorithm designed by Igor Pavlov.
The high compression of LZMA comes from combining two basic, well-proven compression ideas:
* sliding dictionaries (i.e. LZ77/78), and
* markov models (i.e. the thing used by every compression algorithm
that uses a range encoder or similar order-0 entropy coder as its last
stage) with segregation of contexts according to what the bits are used
for.
-> URL: http://hobbes.nmsu.edu/h-search.php?key=lzip.v1.2-os2
Source: OS2.org