Is the software with this device compatible with Mac's Time Machine?

You will need to reformat the drive to HTFS+ which is easily done with disc utility. Time Machine can not back up to FAT32. Macs come with all the software needed already installed and it's easy. There's no need to use 3rd party software.

Does it show up like a drive with a letter when you plug it in? Like the old external drives used to.

Your operating system will auto assign a drive letter to any storage device detected. So, in Windows - Yes, ALL Windows versions will auto assign a drive letter. Once connected you have the option to assign a drive letter to it for all future connections (like P: for portable) rather than take the default.

Will this drive work with the Xbox one? My main concern is that this drive is unformatted, and most compatible are shown as NTFS. I would think that since the Xbox automatically re-formats the drive during initial installation unformatted, NTFS and FAT32 would all work, is this correct as well?

Yes. I've been using the 1TB version on my Xbox One for at least six months now with no issues. I had the Xbox format it, just in case, before use. The downside of USB-powered drives is that its max RPM is 5400, so the install and load times are slower than the on-board drive. If you want faster install and load times of your files/games, you'd have to get a 7200RPM driver, however those need external power (In other words, they have a wall wart which could be unsightly or you might not have an outlet available nearby.)

how does data encryption work?

Encryption is basically encoding information in a way that only the person or computer with the key can decode it. Algorithm's provides the directions and gives a certain range of possible combinations to create the encoded message. A key is a sequence of digital bits that works with an algorithm to encrypt and decrypt the message. basically if you have something on the external hard drive that you don't want others to see if it was stolen or for any other reason encryption keeps them out. you need the key to be able to look at the items / files on the drive.

Brand	Transcend
Product Dimensions	12.95 x 8.23 x 1.88 cm; 185.97 g
Batteries	1 Lithium Ion batteries required.
Item model number	TS2TSJ25M3S
Manufacturer	Transcend
Series	TS2TSJ25M3S
Color	Silver/Green
Form Factor	2.5-inch
Processor Count	1
RAM Size	2048 GB
Hard Drive Size	2 TB
Hard Disk Description	Mechanical Hard Disk
Hard Drive Interface	Serial ATA-600
Hard Disk Rotational Speed	5400 RPM
Power Source	USB POWERED
Hardware Platform	Mac, PC
Operating System	Microsoft Windows 7, Microsoft Windows 8, Microsoft Windows 10, Mac OS X 10.7 or later, Linux Kernel 2.6.31 or later
Are Batteries Included	No
Lithium Battery Energy Content	4.9 Watt Hours
Lithium Battery Packaging	Batteries contained in equipment
Lithium Battery Weight	0.85 Grams
Number Of Lithium Ion Cells	2
Item Weight	186 g

TranscendTS2TSJ25M3S 2TB Storejet 25M3 rugged 2,5inches USB 3.1 Gen 1 interface Iron Gray, Black/Green

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