diff --git a/README.md b/README.md
index 446c380d..f2275fb9 100644
--- a/README.md
+++ b/README.md
@@ -14,7 +14,10 @@ You can also store it in any cloud storage like Google Drive, Dropbox, etc. and
 
 # Functionality
 
-I keeps all encrypted data and encryption key in a dedicated directory with files structured on inodes (with meta info), files for binary content and directories with files/directories entries. All data, metadata and also filenames are encrypted. For new files it generates inode number randomly in `u64` space so it reduces the chance of conflicts when used offline and synced later. Password is collected from CLI and can pe saved in OS keyring
+I keeps all encrypted data and encryption key in a dedicated directory with files structured on inodes (with meta info), files for binary content and directories with files/directories entries. All data, metadata and also filenames are encrypted. For new files it generates inode number randomly in `u64` space so it reduces the chance of conflicts when used offline and synced later.
+
+Password is collected from CLI and can be saved in OS keyring.
+Encryption key is also encrypted with another key derived from the password. This gives the ability to change the password without re-encrypting all data, we just re-encrypt the key.
 
 # Stack