Your vault entries (logins, notes, card data, etc.) are stored as JSON in-memory and then encrypted using <strong>AES-256-GCM</strong> with your master key. The data written to disk is just a random-looking blob of bytes, not readable text.
When you open the app, the vault file is read from disk, decrypted with your master key back into JSON in memory, and then used inside the app. Any changes you make are re-encrypted before being saved again.
Plain-English explanation:
The vault file on disk is always encrypted. If you open it in a text editor, you won’t see passwords – only random bytes. The app decrypts the file into memory when you log in, and re-encrypts it when you save changes. The unencrypted version of your vault never gets written to disk.