From Digital Lifeboat's about us section
Our solution is a distributed storage cloud service. Digital Lifeboat will compress and encrypt each file selected for backup. We then process your encrypted file with an Erasure Coding algorithm that creates many fragments of your file. Once these fragments are prepared for transfer into the Digital Lifeboat Cloud, we then securely send and store each of them outside of your home on different computers. These encrypted, erasure coded, fragments are invisible on their storage hosts.
Using advanced steganographic techniques we safely store encrypted, erasure coded, fragments on your PC from other members of the Digital Lifeboat cloud. These fragments are invisible to your computer and it operates as if they are not there. When you add more data to your hard drive, they will automatically be erased if they are in the way.
What are the security implications of this setup? My dad is looking into it (and when compared with the cost of Carbonite, et al it looks pretty attractive) as a personal storage solution.
What risks could this setup have?