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How can VMs share a memory page at all with this scheme when the salt is unique to each VM? It sounds more like turning off inter-VM memory sharing...

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Each VM has a unique salt by default, but you can still specify two or more VMs to share a salt. See also the comment[1] below by xavierd.

[1] https://news.ycombinator.com/item?id=12411146

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