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Encrypting single files and folders leaves the rest of the disk, including the operating system, open to tampering, and it depends on remembering to do it. Full disk encryption protects the whole drive at once, so a lost or stolen disk reveals nothing, the operating system included.
It is done two ways. Software-based full disk encryption is a program running on the computer that does the encrypting: BitLocker on Windows, or tools like TrueCrypt and BestCrypt. Hardware-based full disk encryption is a self-encrypting drive, bought as such, whose own electronics encrypt everything written to it with no software involved. A TPM is often used alongside either one to unlock the disk automatically at boot, but the TPM is not what does the bulk encryption. To sort a card, ask what does the encrypting: a program on the computer, or the drive itself.
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