Mega uses several different methods to do this: (as of 27 Nov 2013)
- Filesystem API (Chrome/Firefox Extension polyfill)
- Adobe Flash SWF Filewriter (old browsers fallback)
- BlobBuilder (IE10/IE11)
- MEGA Firefox Extension (deprecated)
- Arraybuffer/Blob (in memory) + a[download] (for browsers that support a[download])
- MediaSource (experimental streaming solution)
- Blob stored in IndexedDB storage + a[download] (Firefox 20+, improvement over the in-memory Blob method)
(source: https://eu.static.mega.co.nz/js/download_6.js)