WinFsp is a set of software components for Windows computers that allows the creation of user mode file systems. In this sense it is similar to FUSE (Filesystem in Userspace), which provides the same functionality on UNIX-like computers.
Interesting project. They also provide details on how it works:
WinFsp consists of a kernel mode FSD (File System Driver) and a user mode DLL (Dynamic Link Library). The FSD interfaces with NTOS (the Windows kernel) and handles all interactions necessary to present itself as a file system driver to NTOS. The DLL interfaces with the FSD and presents an easy to use API for creating user mode file systems.
It’s open source, using the AGPLv3 license.