How does the Cloud Xtender encryption work?

Cloud Xtender uses state of the art file encryption technologies. All files are encrypted using a passphrase (or password) supplied by the user (TNO = trust no one), and cannot be decrypted unless this code is known. If you lose this passphrase, the files cannot be decrypted. All encryption happens in trans, meaning the unencrypted version is of the file remain (unless you are operating in remote mode).