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There is no direct compression else it's just a more efficient way to store the data - only distinct values per field in n system-tables and with bit-stuffed pointers to the data-table(s). The more redundant the data are the better is the ratio against the raw-data. The logic within the applications (qvw/qvf) is the same as with the data-files (qvd).
Hi @Aisha
Please note the forum you have posted to is for the Data Integration product Enterprise Manager, used for managing multiple Replicate/Compose/Catalog servers. To reach your target audience, please consider posting your question here: https://community.qlik.com/t5/Qlik-Sense/ct-p/qlik-sense
Thanks,
Dana