Where the size actually goes
Video size is bitrate times duration, nothing more. Cameras and screen recorders choose bitrates generously because storage on the device is cheap and quality is their headline, so a five-minute phone clip can be a gigabyte. Almost all of it is headroom you cannot see. This tool re-encodes the video at a bitrate matched to its resolution, frame rate and your chosen quality level, which is where the 60 to 90 percent reductions come from.
Two controls decide the outcome. Resolution is the blunt, powerful one: halving the frame's dimensions quarters the pixels. Quality is the fine one: it sets how many bits each pixel gets. The defaults, medium quality with a 720p cap, are chosen for the commonest job, which is making a file small enough to send without making it embarrassing to watch.
Fast path, slow path
Browsers have started exposing the same hardware video encoders that phones use for recording. Where yours does, this tool encodes on that hardware, and a minute of 1080p goes by in seconds. Where it does not, a software encoder compiled to WebAssembly does the identical job, universally but slower than real time. The result is the same MP4 either way; only the wait differs. Every step of both paths runs on your machine, and the footage never leaves it.
What to expect, honestly
Compression is lossy and one-way. Re-compressing an already-small file buys little and costs quality, and a video compressor worth trusting reports when a result did not shrink rather than handing it over silently, which this one does. Files up to 500 MB are accepted. For a feature-length archive job, desktop software with hours to spend is still the better instrument; for everything up to that, this page does the work where the file already is.