Virtual Disk Encryption
Since the contents of a virtual disk is stored in virtual disk image file, the encryption of virtual disk data can be implemented "on-the-fly". Virtual disk software can encrypt the virtual disk image file so that only those who know the secret key can access files stored on that disk.
When you save a file to encrypted virtual disk, its contents is automatically encrypted. Reading a file from encrypted virtual disk does the opposite - virtual disk software automatically decrypts the data and you can view the original content of the file.
When the virtual disk is unmounted, its contents is no longer visible and the drive disappears from the system. To make it visible again, the user must enter the secret key first.
Encrypted virtual disks is a convenient method of transferring files between computers in a secure way. You can save encrypted virtual disk image file on removable media to transfer your sensitive files to another computer. In case the adversary gets a storage device with encrypted virtual disk image, he will not be able to read the data from virtual disk image without knowing the encryption key.
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