...All the passwords are stored locally on your PC, where it is encrypted using a secure and unique encryption method.
NOTE: Should you want to compile this yourself, this project was built using Visual Studio 2010. The DLL dependencies are included in the main VS files zip file(taken out of the "redist" folder of VS).
There is a folder containing the project written in QT, so you can compile and run this in Linux, although the QT project is not being updated anymore. Should you encounter a bug I will be glad to help, but I can't guarantee any major updates for it.
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