Bit.ly has to store the entire document encoded in base64 as the URL of the destination in their database in order to return to users the value of the given bit

Bit.ly has to store the entire document encoded in base64 as the URL of the destination in their database in order to return to users the value of the given bit.ly URL hash. In essence, yes, bit.ly is storing the entire document on their servers anytime anyone shortens a hashify.me link. Think if it like the difference between the postal service letting you know there is a package that you can go pick up at the post office, and the postal service giving you a package at your home or work that cannot be opened until you go to the store to buy a box cutter, but you have to bring the package with you. The first example is cheap, since you only receive a pointer or link to where the package is, but you have to do all the work to get it. The second is not cheap, since if the package was a bed from Ikea (for a random large example), the postal service (bit.ly) has to deliver the package to you, and then you have to go somewhere (hashify.me) while carrying that package in order to see what's inside.