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How does this and ZFS on Linux compare? How are they related? As a casual bystander, this is all very confusing.

ZFS on Linux is OpenZFS ported to Linux. As various OpenZFS users (FreeBSD, Nexenta, etc) add features to OpenZFS the code will be merged upstream then adopted downstream by the other OpenZFS users (including ZFS on Linux).

See http://zfsonlinux.org

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