Remote Differential Compression (RDC) allows applications to synchronize data between two computers in an efficient manner.  By measuring differences between network files using the RDC compression algorithm files can be synchronized using minimal bandwidth by limiting the amount of data that needs to be sent across the network.

Because many pre-Vista Windows operating systems don’t use RDC it may hamper network performance. To turn RDC off In Windows Vista or Windows 7:

Start > Control Panel > Programs And Features

Uncheck “Turn Windows Features On and Off”

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It may be a good idea to restart your system at this time even though it doesn’t explicitly ask you to.

Here is the overview from MSDN:

About Remote Differential Compression

Remote Differential Compression (RDC) allows data to be synchronized with a remote source using compression techniques to minimize the amount of data sent across the network.

RDC is different from patching-oriented differencing mechanisms, such as Binary Delta Compression (BDC), that are designed to operate only on known versions of a single file. BDC requires the server to have copies of all versions of the file, and differences between each pair of versions are precomputed so that they can be distributed efficiently from a server to multiple clients.

RDC makes no assumptions about file similarity or versioning. Because differences between files are computed on the fly, RDC is ideally suited for synchronizing files that are different or have been updated independently.

RDC does not assume that the file data to be synchronized resides in physical files. Therefore, the RDC application is responsible for performing file I/O on behalf of the RDC library.

Because it is transport independent, RDC can be used with RPC, HTTP, or other desired transport mechanisms. The RDC application bears the responsibility for choosing the appropriate transport and performing any client or server authentication that is required to support the transport’s security model.

RDC is suitable for applications that move data across a wide area network (WAN) where the data transmission costs outweigh the CPU cost of signature computation. RDC can also be used on faster networks if the amount of data to be transferred is relatively large and the changes to the data are typically small.”