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File-level incrementals copy every byte of any file whose timestamp changed, so a one-byte edit to a 10 GB database file copies all 10 GB. Block-level or changed-block tracking copies only the differing extents, which for large mutable files reduces the incremental by an order of magnitude — the main reason snapshot-based backup outperforms file-based tools on databases and VM images.
Incremental size
file level = dataset x changed file share; block level = file level x share differing within each file
Because database files are huge and constantly touched. Every backup copies the entire file even though a tiny fraction of blocks changed.
Yes, especially across similar systems. Global deduplication can cut backup storage several times more by storing each unique block once for the whole estate.