This implements both major Union-Find optimizations because: 1) Uses path compression in find operation by updating parent pointers, 2) Implements union by rank to keep trees balanced, 3) Combines both techniques for optimal performance, 4) Achieves near-constant time operations, 5) Reduces tree height during finds, 6) Prevents skewed trees during unions, 7) Essential for efficient graph connectivity queries, 8) Common in Kruskal's MST algorithm implementation.