Freenet encrypts temp files with a random key, which for non-persistent temp 
files is kept in RAM, and for persistent temp files is kept in the client layer 
database, which is itself encrypted.

The encryption of the client layer database is less than perfect. We can fix 
this fairly easily, but we will need to re-encrypt node.db4o, and we will 
probably want to have a new key for each file (there will be multiple files as 
soon as I implement auto-backup of node.db4o).

If the user sets a high physical seclevel (with a strong password), the default 
option for downloads is to download to encrypted temporary space. For HTML, 
this is probably safe - the browser will not cache the data and will hopefully 
keep it in disk. But for anything that needs to be opened in an external 
player, and possibly for media files in general, this doesn't help much.

Worse, none of this matters if swap is enabled and not encrypted.

So we have two options really:

1. Offer to turn on encrypted swap in the installer. Keep encrypting 
everything. Warn users about saving files out, and media files, and work 
towards playing media files in an embedded (e.g. java) player that doesn't use 
plaintext temp files.
2. Give up on encrypting anything on disk, and offer to install TrueCrypt if it 
isn't already installed.

IMHO it is important that Freenet works out of the box, and works reasonably 
securely. Arguably it should be possible to install without administrative 
rights. But swap files are an unavoidable problem - anything involving keys in 
RAM is breakable as long as that ram gets stored to disk.

https://bugs.freenetproject.org/view.php?id=4262
https://bugs.freenetproject.org/view.php?id=4258
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