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http://www.tecmint.com/linux-compress-decompress-bz2-files-using-bzip2/#

To compress a file(s), is to significantly decrease the size of the file(s) by encoding data in the file(s) using less bits, and it is normally a useful practice during backup and transfer of a file(s) over a network. On the other hand, decompressing a file(s) means restoring data in the file(s) to its original state.