How does data redundancy under RAID 5 work?

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I do understand RAID 1. You have two drives that are mirrored. So when one drive fails, you have the full set of data on the other drive.

But with RAID 5 you are able to lose a complete drive out of a set of 3 for example. You have full data redundancy without sacrificing half of your capacity. How does this work?

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