What is the current state of affairs when it comes to whether to do
Transfer-Encoding: gzip
or a
Content-Encoding: gzip
The correct usage, as defined in RFC 2616 and actually implemented in the wild, is for the client to send an Accept-Encoding request header (the client may specify multiple encodings). The server may then, and only then, encode the response according to the client's supported encodings (if the file data is not already stored in that encoding), indicate in the Content-Encoding response header which encoding is being used. The client can then read data off of the socket based on the Transfer-Encoding (ie, chunked) and then decode it based on the Content-Encoding (ie: gzip).
So, in your case, the client would send an Accept-Encoding: gzip request header, and then the server may decide to compress (if not already) and send a Content-Encoding: gzip and optionally Transfer-Encoding: chunked response header.
And yes, the Transfer-Encoding header can be used in requests, but only for HTTP 1.1, which requires that both client and server implementations support the chunked encoding in both directions.
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