While ZIP is an in-built functionality in Windows systems, RAR needs specialized software to compress the files and folders. Two popular formats to compress files are ZIP and RAR. Rather, if you intend to send files via a USB disk that has limited space, compressed files would become necessary. This is to save internet data, time, etc. If you need to send a set of files to another user via email or attach a link to a cloud drive, you might have to compress the folder containing files to send it.
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