What file service should you use with network drives and Time Machine?

What kind of networked volumes formatted with which methods can you use with Time Machine? A reader queried me on Twitter, trying to understand from their past experience and Apple’s current documentation, and I agree that it’s not very clear, because of Apple’s inclusive but non-specific language.

Apple used to favor the Apple Filing Protocol (AFP) file service for network drive sharing, local and remote. However, it’s deprecated AFP in favor of the Windows-compatible Server Message Block (SMB) format, which is what’s typically used with network-attached storage (NAS) devices and non-Apple Wi-Fi routers that allow USB-connected drives. (A NAS is typically a standalone disk-drive connected to a network via ethernet that act as a media and file server.)

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