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> One could hypothetically argue that the NSA would be less willing or capable to snoop on data that is stored inside hard drives in citizens' houses

No, even the secret FISA court would have a hard time getting access to this device without a warrant:

Courts have ruled that "cloud storage" (not owned or controlled by you) is not in "your possession". Therefore, the 4th amendment protection against "unreasonable searches of your possessions" doesn't apply. So the government can ask MicroSoft/Apple/Google for your files.

But this drive is clearly in your possession. The keys for it are clearly in your possession. The cloud company website does not do security or have access to your files -- it just helps you locate your device.

Technically, this is no different than a NAS in your house. But the client-side software is 100 times better. (client-side caching, revision tracking, etc.)



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