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In this Windows basics tutorial by Tech Hut, the presenter demonstrates how to use and the benefits of zip files. Zip files compress files to make them easier to send or upload. By selecting files, right-clicking, and choosing to compress into a zip folder, the files are compressed and a new folder is created in the same directory. This process simplifies sending multiple files together or uploading them for easier downloading. Additionally, a tool is mentioned that adds more functionality to zip files.