Panasonic GX8 has a 20.0MP Four Thirds (17.3 x 13 mm ) sized CMOS sensor and features Venus Engine processor. On the other hand, Nikon D7500 has a 21.0MP APS-C (23.5 x 15.7 mm ) sized CMOS sensor and features Expeed 5 processor.
Another difference between these two cameras is that Nikon D7500's sensor lacks anti-alias (Low-Pass) filter. Removing anti-alias filter increases the sharpness and level of detail but at the same time, it increases the chance of moire occurring in certain scenes.
Below you can see the GX8 and D7500 sensor size comparison.
As seen above, Nikon D7500 has a 1.6x Larger sensor area than Panasonic GX8. Larger sensors give photographer more control on the depth of field and blurry background compared to smaller sensor when shot in same focal length and aperture.