This is the setting used for Azure Blob Storage. It is based on the sharding and dynamic provider logic that synchronizes the cluster-file-system.
When using the cluster-azure-blob-storage template, data is temporarily stored on the file system of each node using the Eventual Binary Provider, and is then passed on to your Azure Blob Storage for persistent storage.
Each node has its own local filestore (just like in the file-system binary provider) and is connected to all other cluster nodes via dynamically allocated Remote Binary Providers using the Sharding-Cluster Binary Provider.