FreeOTFE is an open source "on-the-fly" disk encryption (OTFE — On The Fly Encryption) program for PCs and PDAs (FreeOTFE4PDA). It creates "virtual disks" - anything written to which is automatically encrypted before being stored on the computer's hard drive or USB drive.
FreeOTFE was initially released by Sarah Dean in 2004, and was the first open source disk encryption system that provided a modular architecture allowing 3rd parties to implement additional algorithms if required.
This software is compatible with Linux encrypted volumes (e.g. LUKS, cryptoloop, dm-crypt), allowing data encrypted under Linux to be read (and written) freely. It was the first open source transparent disk encryption system to support Windows Vista and PDAs
Optional two-factor authentication using smart cards and/or hardware security modules (HSMs - also known as security tokens) was introduced in v4.0, using the PKCS#11 (Cryptoki) standard developed by RSA Laboratories.
FreeOTFE also allows any number of "hidden volumes" to be created, giving plausible deniability and deniable encryption, and also has the option of encrypting entire partitions or disks
All of the NIST AES finalists are included in FreeOTFE, and all of the ciphers can be used with multiple different keylengths