Consider the following scenarios of storing sensitive data locally on a network connected always-on device:
- without any data encryption whatsoever
- with encryption, the key stored locally in the device
- with encryption, the key stored on a remote location accessible via network
No matter where the key is stored, once the attacker gets physical access to the device, they can obtain the key and decrypt the data. Does storing the encryption key remotely provide any advantage in terms of data security, or are all three scenarios effectively equivalent?