ownCloud v4 - Encryption

[iam]

(Hello all)

Does anyone know how the encryption app/module works in version 4? I've just enabled it on a new install, uploaded some files, and noticed that there is an encryption.key file in the relevant /data folder that stores what looks like... the encryption key - surely this defeats the purpose of the encryption functionality? Unless of course I'm misunderstanding its purpose (or I'm jumping the gun and that file gets deleted...).

I thought the intention with the encryption app was for it to encrypt any uploaded files using the users password, and providing mySQL is secured properly, stop any VPS host's prying eyes?

I'm hopefully going to replace my 'cloud backup' provider with my own ownCloud instance - but some feedback on the above before I make the leap would be much appreciated

[snapr]

The encryption key is randomly generated and then encrypted using your password. The reason for having a encryption key instead of directly using your password is simple: Imagine you change you password...that would mean that all files have to be de- and encrypted to apply the new encryption-key (being your password). By using a dedicated file, you only have to reencrypt the .key file when the password is changed -> faster!