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From 7zip's help:

LZMA2 Default compression method of 7z format. LZMA2 is LZMA-based compression method. It provides better multithreading support than LZMA. But compression ratio can be worse in some cases. For best compression ratio with LZMA2 use 1 or 2 CPU threads. If you use LZMA2 with more than 2 threads, 7-zip splits data to chunks and compresses these chunks independently (2 threads per each chunk).