I use nbdime daily for notebooks under version control thanks to the following configs in my ~/.gitconfig (global git config).

   [diff "jupyternotebook"]
     command = git-nbdiffdriver diff --ignore-details
   [difftool "nbdime"]
     cmd = git-nbdifftool diff --ignore-details \"$LOCAL\" \"$REMOTE\" \"$BASE\"

I'm not sure if this is a standard setup or if I copy-pasted from some blog post, but overall it's working great.

There are some issues with it, like (1) will unnecessarily mark graphics as changed (e.g. re-generated figures from the same code), and (2) the diffs become less meaningful if large chunks of cells were moved, but overall it works great.

If it supported a `--color-words` option then it would be super helpful for seeing only which words have changes, instead of whole lines changed (very good for long paragraphs of Markdown text).