Clarification regarding encryption


I’m just looking for some clarification regarding encryption, specifically regarding encrypted sync stores mentioned here: I know I’m referencing an old article but I couldn’t find anything else more recent in regards to encryption.

What I got from the article is, if I decide to sync to Dropbox, Dropbox won’t be able to decrypt my data because it’s encrypted with a password I chose.

However, from the comments below towards the end.

I don’t know much about encryption but from what I understand, the data is encrypted but the password is not only not encrypted but stored with the data at the remote sync location? So what’s the point of encrypting it then? You are encrypting the data but giving away the key? Am I missing something?

Read your second quotation. As the sync store on Dropbox is encrypted, the password contained within the sync store is encrypted.

Thank you, I just got confused because the third quote is requesting the password to not be stored in plain text and there was no mention of that not being the case. I’m guessing the password is only stored locally in plain text then? While the one in remote location is encrypted?