The presently preferred embodiment of the invention provides an encryption based security system for network storage that separates the ability to access storage from the ability to access the stored data. This is achieved by keeping all the data encrypted on the storage devices. Logically, the invention comprises a device that has two network interfaces: one is a clear text network interface that connects to one or more clients, and the other is a secure network interface that is connected to one or more persistent storage servers. Functionally, each network interface supports multiple network nodes. That is, the clear text network interface supports multiple client machines, and the secure network interface supports one or more storage servers.