Szip uses a limited order Sort transform [ST]. This transformation is related to the Burrows-Wheeler transformation used in blocksorting compression methods. The difference is a fast, deterministic behaviour in time at some compression loss. And you can easily do it in hardware. [...]the program documentation
As next step it uses a probability model for blocksorted files.
The last step is entropy encoding using a range coder. More info, including a GNU GPL sourcecode, can be found on http://www.compressconsult.com/rangecoder/ This coder is based on an article published in 1979 and is belived to be patent-free.
The program is featured in the BWT comparison.
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The program uses full BWT with -o0 -switch.
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