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How Encryption works

I have a generic question about encryption key:
For which domain encryption key is used and how should be installed in ERPNext?
It is encrypting all DB data?

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Did you ever find out?

Nope, my DB data are “in clear”, but i think encryption it’s used for medical data and sensitive data.
But I have no employees and not healthcare domain configured.

In the case of database encryption (for example), whether and how that happens?

My understanding is that remains the domain and responsibility of each user to decide and implement.

That said, users may opt for say this https://mariadb.com/kb/en/library/data-at-rest-encryption-overview/

Note also this PR contribution that did not pass muster to merge into the core Are db backups sent to dropbox encrypted?