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→Creating the root file system
# start from a small file system and add all the components (packages, libraries, application binaries, ..) that you need
Option #2 is always preferrable, because it leads to a very space-optimized root file system, but it could be more demanding, especially when you need to save just little storage space compared to the size of the original RFS (in this case, you can easily go for Option #1).
Please see the [[Embedded_Linux#Embedded distributions|Embedded distros]] article for an introduction on Embedded Linux distributions.