The statement is false. The Vault encryption key is not stored in Vault's backend storage, but rather in Vault's memory. The Vault encryption key is the key that is used to encrypt and decrypt the data that is stored in Vault's backend storage, such as secrets, tokens, policies, etc. The Vault encryption key is derived from the master key, which is generated when Vault is initialized. The master key is split into unseal keys using Shamir's secret sharing algorithm, and the unseal keys are distributed to trusted operators. To start Vault, a quorum of unseal keys is required to reconstruct the master key and derive the encryption key. The encryption key is then kept in memory and used to protect the data in Vault's backend storage. The encryption key is never written to disk or exposed via the API.Reference:Seal/Unseal | Vault | HashiCorp Developer,Key Rotation | Vault | HashiCorp Developer

Integrated Storage is a Raft-based storage backend that allows Vault to store its data internally without relying on an external storage system. It also enables Vault to run in high availability mode with automatic leader election and failover. However, Integrated Storage is not immune to data loss or corruption due to hardware failures, network partitions, or human errors. Therefore, it is recommended to use the snapshot feature to backup and restore the Vault data periodically or on demand. A snapshot is a point-in-time capture of the entire Vault data, including the encrypted secrets, the configuration, and the metadata. Snapshots can be taken and restored using the vault operator raft snapshot command or the sys/storage/raft/snapshot API endpoint. Snapshots are encrypted and can only be restored with a quorum of unseal keys or recovery keys.Snapshots are also portable and can be used to migrate data between different Vault clusters or storage backends.Reference: https://developer.hashicorp.com/vault/docs/concepts/integrated-storage1, https://developer.hashicorp.com/vault/docs/commands/operator/raft/snapshot2, https://developer.hashicorp.com/vault/api-docs/system/storage/raft/snapshot3

The Vault CLI command to query information about the token the client is currently using is vault token lookup. This command displays information about the token or accessor provided as an argument, or the locally authenticated token if no argument is given. The information includes the token ID, accessor, policies, TTL, creation time, and metadata. This command can be useful for debugging and auditing purposes, as well as for renewing or revoking tokens.Reference:token lookup - Command | Vault | HashiCorp Developer,Tokens | Vault | HashiCorp Developer

An identity group is a collection of entities that share some common attributes. An identity group can have one or more policies attached to it, which are inherited by all the members of the group. An identity group can also have subgroups, which can further refine the policies and attributes for a subset of entities.

One of the use cases of an identity group is to consistently apply the same set of policies to a collection of entities. For example, an organization may have different teams or departments, such as engineering, sales, or marketing. Each team may have its own identity group, with policies that grant access to the secrets and resources that are relevant to their work. By creating an identity group for each team, the organization can ensure that the entities belonging to each team have the same level of access and permissions, regardless of which authentication method they use to log in to Vault.Reference:Identity: entities and groups | Vault | HashiCorp Developer,vault_identity_group | Resources | hashicorp/vault | Terraform | Terraform Registry

Dynamic secrets are generated on-demand by Vault and have a limited time-to-live (TTL). They do not ensure that administrators can see every password used, as they are often encrypted and ephemeral. The benefits of dynamic secrets are:

They support systems that do not natively provide a method of expiring credentials, such as databases, cloud providers, SSH, etc. Vault can revoke the credentials when they are no longer needed or when the lease expires.

They minimize the damage of credentials leaking, as they are short-lived and can be easily rotated or revoked. If a credential is compromised, the attacker has a limited window of opportunity to use it before it becomes invalid.

They replace cumbersome password rotation tools and practices, as Vault can handle the generation and revocation of credentials automatically and securely. This reduces the operational overhead and complexity of managing secrets.