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Help lollipop encryption and screen pattern

Iamua

Lurker
So, I just got a Lenovo P70 and upgraded it to Lollipop
now, I see the option of Encrypting the phone it took about 10 minutes to "encrypt" and I used my regular Pattern that I use for the screen lock.

Now under the settings I get a fancy "encrypted". Ok, that's nice, but how is it encrypted? what's the key made of if I didn't enter any characters? Is it encrypted or is the phone providing me with the false sense of security ?
 
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