Yes, all of your files will be encrypted. In technical terms, Ardrive uses AES-256-GCM, which we believe is the best encryption standard currently available. AES-256-GCM is the current standard for top-secret military information. Learn more
Additionally, every private file has its own ‘private key’ based on the key from the user’s Arweave wallet combined with their password. This makes it only possible for the content to be accessed by the person with that ‘private key’ (you) and the people that they share it with.