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This is NOT deniable encryption. IIRC, Schnieder showed that every encrypted drive that is accessed by a non-encrypted OS leaves behind traces in the OS logs, filepaths, etc. The only way to have a truly deniable encryption is to have a secondary, hidden OS that is only accessed occasionally.
I also wonder what the chances are that the software uses GPL'd code.
It seems to me that a secondary OS with an OTP (edit: one time pad) XOR cipher using two SD cards (where the SD "keycard" is easily removable) could provide the best solution. Any information on the permanently installed SD card would be impossible to decrypt under any circumstances without the second SD keycard.
I also wonder what the chances are that the software uses GPL'd code.
It seems to me that a secondary OS with an OTP (edit: one time pad) XOR cipher using two SD cards (where the SD "keycard" is easily removable) could provide the best solution. Any information on the permanently installed SD card would be impossible to decrypt under any circumstances without the second SD keycard.