The traditional ZIP encryption. This is a weak encryption method.
WinZipAes
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The WinZip AES encryption method. This is a strong encryption method.
Remarks
The Compatible encryption method is considered weak by today's standards and its use is recommended only for situations with low security needs or for compatibility with older zip archives.
When decrypting data using Compatible encryption, the password verification isn't 100% accurate. It is possible that an invalid password will not be detected. In that case, decryption will process but the decrypted data will be garbage. In the context of unzipping, this will always result in a decompression failure or a checksum failure so no incorrect data will ever be delivered. However, special care needs to be taken when handling exceptions.
For WinZipAES, AES stands for Advanced Encryption Standard. It is a specification for the encryption of electronic data established by the U.S. National Institute of Standards and Technology. It specifies a set of specific key and block sizes on the Rijndael cipher. As of 2013, no attacks of the encryption that are computationally faster than a full brute force attack are known.
WinZip is part of the name because the encrypted data is framed using a format called 'counter mode' that was first implemented by the WinZip application.