Gzip can also have multiple “frames” concatenated together and be seamlessly decrypted. Is this basically the same concept? As mentioned by others bgzip uses this feature of gzip to great effect and is the standard compression in bioinformatics because of it (and is sadly hard coded to limit other potentially useful Gzip extensions).
My interest is to see if using zstd instead of gzip as a basis of a format would be beneficial. I expect for there to be better compression, but I’m skeptical if it would be enough to make it worthwhile.