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This is how I do that for servers, but I'm experimenting with using the same backup schema for my local machine, too:

On my servers, every virtual machine is on an encrypted block device, so the data is already encrypted when it's written to the disk. Then I use Shasplit [1] and Rsync for efficient incremental backups. Restoration is a simple "cat" invocation (or use Shasplit for that), and I get back a full, running, encrypted VM with everything.

[1] http://vog.github.io/shasplit/



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