Wallet Encryption...
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I just tried to unlock my FTC wallet, and realized that I didn’t remember the encryption passphrase. After about 10 minutes of panic, I figured it out. As I was going through this, I realized that my wallet was still accessible. All of the send and receive features appeared to still be working as they should.
What is the benefit of encrypting a desktop wallet? If I am still able to send from the wallet, what is the encryption accomplishing?
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If you start an encrypted wallet, you have access to all functions, but if you actually try to send coins, you are requested the password.
This happens only once for the running wallet.The encryption also is a security measure against someone getting access to your computer and the wallet.dat file.
By copying the wallet.dat the intruder gets your private keys and full access to your coins, if the wallet is not encrypted.