I’ll try to go for a true ELI5 here. Imagine you have a sheet of paper with stuff written on it (the original information). You crumple it up, so that you can put it in your pocket (as a zip file). Now it takes up much less space and it’s more convenient to move around, despite still having all the information of the original on it. But you can’t read what’s on it, because it’s all crumpled up. You’ll have to unfold it and straighten it out (unzip) in order to be able to read it again.
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