Even though the git model stores snapshots, internally it optimizes the 
storage to a degree which makes it take up storage space equal to that if 
only the diffs were stored. If you're curious, read more about how it works 

As far as I know, all SCM's, including Hg/Mercurial, have problems or 
limitations when it comes to storing diffs on binary files. 

Mercurial ships with an extensions that works around this by storing large 
files outside the 
repository: http://mercurial.selenic.com/wiki/LargefilesExtension

Some further googling found a similar approach for 
Git: http://git-annex.branchable.com/

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