I am wondering, what is the industry standard regarding dump formats, when making and storing the database dumps?
Is it better to dump it to a custom-format compressed and unreadable archive, or just simply .sql?
This is database-agnostic question, but here are examples for PostgreSQL to give the idea:
# MYDATABASE to CUSTOM ARCHIVE pg_dump -Fc mydatabase > mydatabase.dump
# MYDATABASE to SQL pg_dump -h localhost -U postgres pagila > mydatabase.sql