(source: https://sites.google.com/site/rsync2u/home/rsync-tutorial/how-rsync-works3)
~/demo1$rsync is efficient. The first time rsync is run, destination is created and the full source is copied to destination. Thereafter, only changes in source are copied to destination. If the --link-dest option is used, unchanged files are hard linked to the previous backup.
A hard link is a pointer to a file. Hard links have the advantage of using very little memory. There is an illustrated explanation of hard links on http://blog.interlinked.org/tutorials/rsync_time_machine.html > scroll down to “Hard-Links”.
Here is how the "rsync --link-dest=DIR" algorithm creates files in destination:
if destination does not exists,