SQL Server utilizes an encryption hierarchy that enables databases to be shared within a cluster or migrated to other instances without re-encrypting them. The hierarchy consists of a combination of symmetric and asymmetric ciphers:4
During database backups, compression occurs after encryption. Due to the fact that strongly encrypted data cannot be significantly compressed, backups of TDE encrypted databases require additional resources.
To enable automatic booting, SQL Server stores the lowest level encryption keys in persistent storage (using the DPAPI store). This presents a potential security issue because the stored keys can be directly recovered from a live system or from backups and used to decrypt the databases.5
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