These files also take very little time to download, and all your important files remain safe inside. The RAR files are compressed so that it can be easy to upload or send the files over the internet. RAR files are used to merge multiple large files into a smaller file by compressing it. RAR however, has increased compression speed, better encryption, and a lower data loss rate. ZIP is the most commonly used file format for lossless storage of data that’s been around longer than RAR, which also accounts for a significant amount of internet archive archives. The only difference is that one is more advance, and one is not. They both are used to compress your files. They think that the RAR and ZIP files have different functionalities, but it’s not true. Many people get confused between RAR and ZIP.