Re:Dropbox (YC S07): Simple Tasks for Extra Space (768MB total)
by Dylan16807 on Tuesday November 23, 2010 @06:08PM
(#1935766)
The encryption is block based. Change a bit and you're completely scramble the block, but no more.
I don't know how the two are supposed to combine, but the prediction is that for a truecrypt disk image, any change in the contents produces a very different disk image all over - so transferring "the delta" is still a much larger amount than you'd expect.
Although, if this were the case it would also have to rewrite the disk image a lot and that might be quite bad for just local use.