According to Wikipedia,
inotify is a Linux kernel subsystem which notices changes to the file system. It replaced the previous dnotify.
Programs that sync files (such as crashplan, dropbox, git) recomend in user guides that the user increase max_user_watches
(1, 2, 3).
From what I understand about inotify, the OS is "told" that a file has been changed, instead of requiring the OS to "go looking" for changes.
I assume that there is an "inotify" file created in every directory. Is this correct? Is there a way to interact with inotify from the command line?
Resources
Why are inotify events different on an NFS mount?
Inotifywait for large number of files in a directory
grep --exclude=arch -r inotify
in the Linux kernel sources.