Beyond Compare uses several different algorithms depending on the type and configuration of the file. In v4, line alignment algorithms are explicitly specified in the interface:
Standard alignment is a proprietary algorithm; we have not provided information publicly.
Aligning Myers O (ND) is the same as GNU diff and most other applications. It is based on the document "O (ND) decomposition algorithm and its variations" by Eugene Myers (1986).
Matching Patience Diff is the "Patience Diff" algorithm that Bram Cohen originally developed for Bazaar, which he talks about here .
Character alignment to highlight line differences is based on the Myers O (ND) algorithm with some post-processing to clear the results.
source share