The fact that they could in any way know what's stored (adult or not) means the "encryption" is nothing more than a marketing gimmick. Useful encryption would mean that what's actually sent to their server is unreadable.

In addition, if they plan to start using md5 hashes now, that indicates a lack of knowledge about security because MD5 was cracked several months ago and should no longer be used for new applications. The should be using one of the SHA family of hashes, salted, via crypt().


Those are my two observations as a career security person with knowledge of off site backup gained from spending four years developing Clonebox and consulting on Orion offsite backup.