Shredded Storage: Shredded Storage is a feature introduced in SharePoint 2013 to optimize the File IO operations. In SharePoint, unstructured content (Microsoft Office documents etc.) are stored as BLOBs. In SharePoint 2013, individual BLOBs are broken into “shredded BLOBs” or deltas with representative Ids.
When a file is updated only the shredded BLOB that corresponds to the change is updated with the update occurring on the database server as opposed to the Web server. As a result, File IO operations are reduced by approximately 2 times as compared to SharePoint 2010.
Remote Blob:
Remote Blob storage (RBS) was introduced in SharePoint 2010 that leveraged built-in SQL Server 2008 capabilities to store unstructured data (relatively large files) as External BLOB Storage instead of the content database for performance improvement. When RBS is enabled and configured, File size limit can be set to move it to the RBS.
Shredded Storage Vs. Remote Blob Storage:
As we see, Remote Blob storage is a feature that is meant to work well for files with larger size (bigger blobs) and Shredded Storage breaks the file into smaller blobs, it is intriguing as to how these 2 features will work best together.
There are many blogs available online that throw light on this topic and get into the details of each feature. I came across this article that explains it in a simple way with examples.
http://blogs.msdn.com/b/mossbiz/archive/2013/09/13/shredded-storage-vs-rbs.aspx