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Depending on the system settings you can choose how you want the decryption to be performed. This depends on your security requirements and possibilities:

 DescriptionUsabilitySecurity
Local StorageThe private key is stored in the browser local storage (similar to a cookie)(star)(star)(star)(thumbs up)
Key ServerThe private key is available through an external process running on the client machine. Then the browser can only request decryption.
You have to install an extra Key Server on your machine, which is able to both recognize provided key files or Smart Cards (currently Windows only).
The key is never saved in the browser.
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AskWhen downloading an E2EE file, the private key has to be copy/pasted into a browser form. The key is never saved in the browser.(star)(thumbs up)(thumbs up)
Download onlyThe E2EE file is downloaded locally and a secondary tool is required to decrypt (E2EE Reader).
The E2EE Reader supports both file and Smart Card decryption (currently Windows only).
The key is never saved in the browser.
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Private Key Generation

For the Local Storage key storage, ownCloud users must generate their own private key.

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