How Does IPFS Work With Large Files?

IPFS works on the idea of blocks. If you have a 10 megabyte file, when you add it to your IPFS node, what that local IPFS will do is chunk that file or break it up into smaller chunks. It will keep each one of those chunks and address and then it will encode that data into a Merkle tag. This is basically a data construct that maps the IDs of all of those blocks into one walkable directed acyclic graph.