Just how do they differ in their working or storing of files? People have been saying Ex-FAT is a better file system, and not to use NTFS so much. But how do they differ in actual working. Can anyone explain?
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One very important difference comes about if you use the EFS "Encrypted" attribute (EFS stands for Encrypting File System ).
EFS is transparent. You don't see it. Files are encrypted on the disk, but are automatically decrypted when you access them.
for more media that needs to move around, FAT is usually more handy because NTFS has security attributes that get tied to the local computer by default.
exFAT does (better) which NTFS doesn't which is useful when using it for more removable mass storage .

Abhi Adr
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FAT32 also limits file transfers to 4 GB only right? What does that have to do with the file system? – Arun Babu Mar 25 '15 at 10:09
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http://en.wikipedia.org/wiki/File_Allocation_Table#FAT32 read FAT32 – Abhi Adr Mar 25 '15 at 10:22
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It simply means that if you have a drive or partition that is formatted as FAT32, you can't store files bigger than 4GB. It's largely not an issue for Linux users but you can still find USB flashdrives that are formatted with FAT32. These can usually be reformatted to something less rubbish. – Abhi Adr Mar 25 '15 at 10:34