How files are stored in lfs and git

[anderzejn]

I have a question about the difference between storing type of git vs git lfs.
So it seems logical that git lfs stores all the files on separate server and is paid because of that (if we exceed data limits).
But git without lfs is not paid ever. Why is that. Are not all git files stored on servers anyway? Why would we pay for more data limit on lfs if we get all the data for free in git?

I get lfs lets you bypass 100MB per file limit and it makes your local space thinner, but are there any other differences?

[DanM]

This answers how git stores data

How does git store files?

And for git LFS that stores pointers to the files in git and then the actual files are stored on a remote server like GitHub. So each new version of the file would be stored on the remote server.