How Text Diff works
The text diff tool compares two blocks of text line by line and highlights which lines were added, removed or unchanged. Additions appear in green and deletions in red, in a single stacked view with the line numbers of both texts in the gutter. The comparison runs instantly in the browser the moment both input areas contain text, and nothing you paste is transmitted to any server.
The comparison is a longest-common-subsequence diff over whole lines, the same family the Unix diff utility belongs to: it finds the largest set of lines the two texts share, and everything else is an insertion or a deletion. The output reads like a unified diff, which is familiar if you already read git diff output.