But since it's open source, there is nothing that would keep you from writing a compiler yourself.
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how to compress a lua file into an exe?
You probably can, but the usual method of "compiling" an interpreted language like Lua, Perl, Python, Ruby, whathaveyou, is to just tack on the entire runtime to the executable, so you don't gain any performance benefits at all... Probably the opposite. The one and only reason to do it would be if you don't want someone being able to easily get at your code, in which case you probably wouldn't be using a language like Lua.
the difference between an interpreted language and a compiled is the compiled language is compiled into a language the and processor understand (machine language). Interpreted language are used so you can write the same code on any OS and you need a run time engine that basically compiles the code into bytecode that for that particular OS. It does it on the fly whereas a compiled language when you compile it will generate a file with an exe extension. Most languages the higher level coding uses some type of editor to write the code.
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