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In this video, the tutorial demonstrates how to achieve the best compression rates for 7z and zip files using 7-zip. To compress files using 7z, select all the files, right-click, choose 7-zip, add to archive, choose 7z as the archive format, set compression level to normal, compression method to lzma, dictionary size to 1024MB, word size to 273, block size to 4GB, and CPU threads to 8 or 4. For zip files, choose zip as the archive format, set compression level to normal, compression method to lzma, dictionary size to 1024MB, word size to 273, and CPU threads to 2, 8, or 4. Click OK to start compressing. Like, comment, and subscribe for more tech videos.