What is the difference between a password and the key used to encrypt SafeHouse volumes?
When you create a new SafeHouse volume (container file) an encryption key is randomly generated by the software and is associated with the volume. This is the key which is used to encrypt your data. It does not change for the life of the volume. Separately, you are asked to choose a password for your volume. The password is hashed into a bit stream using the respected MD5 algorithm which is then used to encrypt the random data encryption key. This two-step process has the same degree of security as using your password to directly encrypt your data; however, it has the additional advantage of making password changes fast and simple since it is no longer necessary to re-encrypt the entire volume each time you change your password.