ProtectedData Security- Accessing Encrypted Data on a Different Machine

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I'm using the Local Machine Scope to protect software specific data.

ProtectData.Protect(Byte[], Byte[], DataProtectionScope.LocalMachine)

If someone copies the ProtectedData to another system it wont work right? Is it because of the password is different? What exactly is the thing that prevents access of encrypted data on a different machine.

  • I understand parts of user password is used to create a Masterkey

-This master key changes when the user changes his password automatically ie: the thing simply works.But it also says that if an Admin Resets the password the Data will no longer be accessible.What is that scenario?

-In the LocalMachine mode how is the MasterKey generated.Its not the password alone right? Since its applicable to all the users on the system.

Basically im looking to replace hardware id with this.

What im trying to achieve is the same functionality of what a hardware based encryption.Is that possible using ProtectData? Simply i dont want the secret to be accessed on a different system

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If you encrypt with machine scope, anyone who can read local disk can decrypt.
No passwords are involved.