SharePoint document library stoarge- how does it work?

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Occasional Contributor

I read that SharePoint Online uses shredded storage. This where only the differences are stored between each version of a document. So I have 4 uploaded versions of exactly the same pdf but the storage metric reports the total of all 4. Any ideas?storage.PNGversions.PNG

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Shredded storage does what you said, but not reduced the size of a file...Shredded storage was designed for having good performance when saving files so only the actual piece of the document that was modified is saved and not the entire file...but the entire file is still there
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@Juan Carlos González Martín thanks. I wish I can configure the Document Library to have fewer versions than 100. I can see this clever move from MS to get people to buy more storage.