TXT is a file format that contains the text, organized in rows. Text files opposed binaries that contain data that is not intended for interpretation as a text (encoded sound or image). The text file can contain both formatted and unformatted text. Since the very simple text files, they are frequently used for storing data.
Since 2007, Microsoft began to use a file format docx, which is created by using the Office Open XML. The format is a zip-file containing the text in the form of XML, graphics and other data that can be translated into a sequence of bits using patent-protected binary formats. At first it was assumed that this format will replace the doc, but both formats are still used today.