Data Format
Apple Disk Image files are essentially raw disk images (i.e. contain block data), optionally with one or two layers applied that provide compression and encryption. In hdiutil these layers are called CUDIFEncoding and CEncryptedEncoding.
UDIF supports ADC (an old proprietary compression format by Apple), zlib, and bzip2 (Mac OS X v10.4 and later only) compression internally.
Read more about this topic: Apple Disk Image
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