How Dropbox Smart Sync is implemented?

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Dropbox Smart Sync is a mode in which Dropbox does not copy files to local machine by default and only store a kind of placeholder with metadata instead. When user accesses the file then Dropbox downloads the file content from internet to make it available locally. This seems like a virtual file system or something similar. Does anybody know which exact technology Dropbox uses for Smart Sync on Mac and other platforms?

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