How does the terracotta server array store data?

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I am using the kit "TERRACOTTA SERVER 4.X AND OLDER" downloaded from "http://www.terracotta.org/open-source/". I want to know how the data is stored in the TSA , in a file or something else? I am aware the data is stored somewhere in the server-data directory which ofcourse is mentioned in the tc-config file in the data element. Any insight on this would be very helpful.

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