In fact, git stores a full snapshot of your entire repo with every commit. It does not store diffs from the previous commit. When you do "git show <COMMIT_SHA>" it generates a diff from the parent commit on the fly.

There's a huge optimization though: it uses a content-addressed blob store, where everything is referenced by the sha1 of its contents. So if a file's contents is exactly the same between two commits, it ends up using the same blob. They don't have to be sequential commits, or it could even be two different file paths in the same commit. Git doesn't care - it's a "dumb content tracker". If one character of a file is different, git stores a whole separate copy of the file for it. But every once in a while it packs all blobs into a single file, and compresses the whole thing at once, and the compression can take advantage of blobs which are very similar.