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OCR: HOW DOES ZMODEM OPERATE? Zmodem operates from an external module. Recently there are those communication packages that have implemented it as an internal protocol. In doing so, they have sacrificed many of the options that make it the fine protocol that it is. The protocol known as Zmodem, is actually one of many protocols that can be generated by an external program, known as DSZ. In addition to Zmodem, the DSZ module is capable of generating xmodem, xmodem crc, y-modem, and ymodem-g, to mention only a few. In addition, it can use many of these protocols in a batch mode, so that you do not need to enter every file name that you wish to transfer.