The service to deliver "unlimited storage" by compressing data and , rather than simply storing all of each user's files on its servers. If multiple users have the same file saved, Bitcasa saves pointers to the files rather than copies.

De-duplicating data across users has among industry watchers. But the company says that file encryption occurs on the client side, keeping the user's files safeguarded from intrusion by the company or other users, concerns that have potentially slowed the adoption of consumer cloud storage services.

On Mac, PC and Linux desktops, Bitcasa integrates with the operating system, such that the system will indicate that a file stored through Bitcasa is local, according to CEO Tony Gauda. Bitcasa works on mobile devices using HTML5.

When there is a connection, local devices communicate with the cloud by streaming, rather than through discrete uploads and downloads, potentially speeding things up.