Sal, thanks for the very helpful question - I have a better understanding 
of the issues than I did when this thread started.

Client-side crypto is more secure. However, an app that contains 
client-side crypto must identify itself as such when registering for sale 
in Google Play or the iTunes App Store. I understand that this triggers a 
regulatory review that's timeconsuming and perhaps intimidating. So if the 
MLO Cloud Sync service is ever enhanced to provide encrypted storage of 
data-aty-rest, it's more likely to be done on the server side than the 
client side.Server-side cryptography is still far more secure than password 
protection.

On Friday, July 25, 2014 3:59:00 PM UTC-4, Sal Ricciardi wrote:
>
> . . . Regarding encryption, putting aside the technical issues, it comes 
> down to trust and transparency.  If you are a provider and you convince me 
> through that manner in which you evangelize and discuss your security 
> commitments, your technology implementation within obvious limits, and 
> through customer positive experience, I'm usually willing to at least 
> consider your service. First comes trust and transparency. Technically, with 
> that prerequisite in place, I do agree that the encryption has to occur on 
> the client (i.e. my computer) and my preference is very much that the data 
> stay encrypted on the server. Is that not possible due to regulations?. . .
>

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