This is a long article and the first part is a history of backup 
strategies (something not everyone will find interesting). However, after 
that it goes into a lot of detail about "Time Machine." This is a big 
deal for Apple and they have invested a lot in making it work by making a 
very interesting change to how its file system works. They have created a 
new type of alias (shortcut) that keeps a file around as long as any one 
of these new pointers exists and lets them stack up multiple instances of 
the same file. This allows them to make many snapshots of your files 
while automatically eliminating duplicates. Very interesting.

http://www.appleinsider.com/articles/07/10/12/road_to_mac_os_x_leopard_time
_machine.html


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