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> let the ZFS snapshots handle the versioning/rotation which would give you the benefits of block level diffs

Can you explain this a bit? I don't know anything about ZFS, but it sounds as though it creates snapshots based on block level differences? Maybe a git-annex backend could be written to take advantage of that -- I don't know.

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ZFS does snapshots (very lightweight and quick) and separately it can do deduplication. It has a lot of nice features, I'd recommend looking into it if you find it interesting. It's quite practical these days (I think it comes with ubuntu even) and it's saved my butt a time or two.

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