Imagine situation. There are in your vault you have file with passwords. Basically this is regular .md file which can be easily accessed by other apps. But you install special plugin, setup special keyword for you file/folder. And
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This plugin encrypt your .md file based on your keyword. Your text inside .md became abracadabrabarabaracadarbra (unreadable).
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When you try to open this file → plugin show you popup and asks about keyword
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You enter keyword
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Plugin create copy of your file and paste there encrypted version of your file (encrypted based on keyword you have entered)
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After your close file or timeout went out, plugin remove encrypted back copy