Welcome to the NZRT Wiki Podcast. Today we’re looking at Nextcloud Encryption.
If you’ve ever wondered how your files stay safe when they’re sitting on a server or moving across the internet, encryption is the answer. Nextcloud gives you a couple of different ways to protect your data, and today we’re going to walk through what those options are, how they work, and how NZRT uses them in practice.
Let’s start with the basics. There are three types of encryption you’ll encounter in Nextcloud. The first is server-side encryption. This protects your files while they’re sitting at rest on the disk, so if someone were to physically steal the hardware, they wouldn’t be able to read your files. It’s great for general file storage. The second type is end-to-end encryption, often called E2EE. This one goes further — it means only users who hold the right decryption keys can ever read the content. Even Nextcloud itself cannot see inside those files. This is the one you want for truly sensitive data. The third type is TLS, which is the encryption that protects your data while it’s travelling across the network. This applies to all traffic and guards against anyone trying to intercept data as it moves between your device and the server.
So to summarise those three: server-side protects files at rest from hardware theft, end-to-end protects from a server breach because not even the server can read it, and TLS protects everything in transit from network snooping.
Now let’s talk about how you actually set up end-to-end encryption. There’s a command-line step involved here. What the setup does is first enable the encryption app on the Nextcloud server — that’s done through the admin apps panel using a server command that activates the encryption module. From there, you can configure specific folders to use encrypted sharing, which involves setting a key passphrase for that folder. So you’re not encrypting everything blindly — you choose which folders get the extra protection.
At NZRT, two folders are currently set up with end-to-end encryption. The first is the HR Payroll folder, which is encrypted and accessible only to the Finance agent and the HR agent. The second is the Finance Bank folder, which is encrypted and restricted to the Finance agent alone.
Now here’s an important decision you’ll need to make when setting up encryption: do you use a Master Key or User Keys? With the Master Key approach, there’s a single key that covers all files. It’s simpler to manage and faster to work with, but it’s less secure because there’s one point of failure. With User Keys, every user has their own unique key. This means you get true end-to-end encryption because no single key can unlock everything. The tradeoff is more overhead to manage.
For NZRT, the approach is split depending on what you’re protecting. For the HR and Finance folders — the ones handling payroll, contracts, and bank statements — User Keys are used. That’s the stronger option and the right call for that level of sensitivity. For general documents that don’t carry that same risk, the Master Key approach is used, which keeps things simpler without unnecessary complexity.
One more important point on key management. At NZRT, encryption keys are not stored on the Nextcloud server itself. They’re backed up in a secure vault separately. This matters because if the server were ever compromised, the keys wouldn’t be sitting there alongside the encrypted files. That separation is a deliberate security decision.
To bring it all together: Nextcloud gives you layered encryption options. TLS handles your data in motion. Server-side encryption handles your data at rest. And end-to-end encryption handles your most sensitive data by making it unreadable to everyone except the people who hold the keys. NZRT uses all three layers, with end-to-end encryption and User Keys specifically applied to HR and Finance workflows where the stakes are highest.
If you want to dig deeper, related topics include File Sharing and Links, Users and Groups, and Backups and Maintenance — all covered in the NZRT wiki.
That’s it for this episode of the NZRT Wiki Podcast. Thanks for listening.