It's not one algorithm but two, that dance and weave together in harmony. You can pick dictionary matching, or entropy coding, and you can select between them on a per-byte basis with no overhead. That's what I find so clever about it - not that it can do one thing or the other, but that it can choose either, and yet represent them using the same language. No extra markers, nothing to say "oh, now we're switching to entropy mode", nothing to get in the way.
It's not one algorithm but two, that dance and weave together in harmony. You can pick dictionary matching, or entropy coding, and you can select between them on a per-byte basis with no overhead. That's what I find so clever about it - not that it can do one thing or the other, but that it can choose either, and yet represent them using the same language. No extra markers, nothing to say "oh, now we're switching to entropy mode", nothing to get in the way.