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I’m sure this feels like an accomplishment but in practice it provides nothing over git/source control as usual, and any number of reliable open or free hosted file sharing options.

What specifically is missing in the current ecosystem of electron state moving technologies that this solves? Why this instead of git and a Wireguard based mesh of devices (to offer my current setup as an example; there are others).

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The goal with Mutagen is real-time remote development, not source control or complex networking. It's designed to facilitate making changes to code locally and then having those immediately propagated to a remote system for compilation, execution, etc. Basically, it's designed for the work you do between Git commits, saving you the need to do a full commit, push, pull, evaluate cycle to test your code on a remote system.

Basically, it's like VS Code's remote development extensions, but editor-agnostic and more flexible.

Speed. This works so fast that it improves the efficiency of local development with containers.

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