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Software solutions such as BitLocker, DiskCryptor and the popular VeraCrypt allow the contents of a USB drive to be encrypted automatically and transparently. Also, Windows 7 Enterprise, Windows 7 Ultimate and Windows Server 2008 R2 provide USB drive encryption using BitLocker to Go.
In September 2019 a new update was released (KB4516071 [28]) changing the default setting for BitLocker when encrypting a self-encrypting drive. Now, the default is to use software encryption for newly encrypted drives. This is due to hardware encryption flaws and security concerns related to those issues. [29]
Note that this does not imply that the encrypted disk can be used as the boot disk itself; refer to pre-boot authentication in the features comparison table. Partition: Whether individual disk partitions can be encrypted. File: Whether the encrypted container can be stored in a file (usually implemented as encrypted loop devices).
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Disk encryption does not replace file encryption in all situations. Disk encryption is sometimes used in conjunction with filesystem-level encryption with the intention of providing a more secure implementation. Since disk encryption generally uses the same key for encrypting the whole drive, all of the data can be decrypted when the system runs.