Encryption is based on your username. So if you encrypt a file or folder and you try to open the file, the file is automatically decrypted. If you try with another username the file remains encrypted and will not open. There is no password to open the files, only your username credentials are used as password.
When you apply encryption for a folder, all the files inside the folder will be encrypted including new files you add to that folder.
To remove the encryption, right click on the topmost folder where you have applied the encryption, go to Properties - Advanced and remove the check mark for " Encrypt contents to secure data". Click OK and in the Confirm Attribute Changes dialog box select "Apply changes to this folder, subfolders and files". Now the green color for the files and folder names will turn black. You can also verify the attributes of the folders and files for absence of Encryption attribute.
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