It plugs into your USB port and the built in software lets you encrypt the data on your PC or Laptop, as soon as you unplug the key from your PC or Laptop the data is inaccessible. What if you lose your GoldKey? If you also purchase a Goldkey “Master Key,” you can effectively create a backup locking system. The Master Key can duplicate the ability of your Goldkey to another. You can also use the Master Key to create a group of Goldkeys that can all unlock each others’ files.