Praxiiz managed to create this system by creating a new Igrping.dll.
Once the client start, it will load the dll and then the dll will inject itself to the client and will handle some functionalities (communications, file handling, etc...). The dll also target the original dll (renamed to Igrping_.dll) for the default functions. It will create blank map files (if your server ask to or use custom maps). When the client more around the map and the server detect map changes (or blank map), a
streaming process will start. Basically this system "turns" the map into a dynamic state, when needed the server send the change to the client.
For both server/client side, none of the original files are modified, the server stores the changes into "patch" files and the client has a custom folder that store the map like the original files
When the player chop a tree, the server remove the world static and send the change to the client. There is a tree spawning system that handle every tree harvest. In theory you can devastate the entire world and the server would respawn them but will take some time to harvest 200.000+ trees =P
I am not into how exactly the luberjacking works, but seems to be something like that
If you are wondering about the network usage, I tested it and the peak was ~950bps for streaming unknown areas. Live map editing should take no more than 100bps since most edits are point based
The system is pretty functional and can be tested in live servers with no major problems although it seems to not be finished
There are some other technical details that I can explain if you have a more specific curiosity, even if it has not created by me.